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MicroStrategy, a well-known American business intelligence company, has just reported the financial results for the second quarter of 2024, with Bitcoin once again playing a leading role.
The earnings data do not excite investors, but the MSTR stock still maintains a positive price structure. Meanwhile, the company buys more Bitcoin and brings the total holdings to 226,500 BTC, worth 14.7 billion dollars.
Let’s see everything in detail below.
Summary
MicroStrategy acquires another 169 Bitcoin and brings the overall balance to 226,500 BTC
In the latest publication of its financial results, MicroStrategy surprised all stakeholders by announcing yet another purchase of Bitcoin.
On August 1st, the American software intelligence company revealed that it had added 169 BTC to its cryptocurrency portfolio, equivalent to 11.4 million dollars.
With this, MicroStrategy brings its total holdings to 226,500 BTC, equivalent to a record value of 14.7 billion dollars.
In July, @MicroStrategy acquired an additional 169 BTC for $11.4 million and now holds 226,500 BTC. Please join us at 5pm ET as we discuss our Q2 2024 financial results, the outlook for $BTC, and our #Bitcoin development strategy. $MSTRhttps://t.co/cfGPc42jfM
— Michael Saylor⚡️ (@saylor) August 1, 2024
The tech giant from Tyson Corner confirms its position as the largest holders of the orange cryptocurrency and extends its lead over the second in the ranking Marathon Digital.
Since MicroStrategy adopted the philosophy of the “Bitcoin Standard” in August 2020, we have witnessed frequent buying opportunities, both in bear and bull market.
In total Michael Saylor, executive chairman of the company as well as spokesperson for pro-Bitcoin propaganda, is in profit of 6.4 billion dollars on his position.
Of the 226,500 BTC in the safe, most were in fact purchased well below current prices. The average purchase price is around 36,800 dollars, for a return on investment of approximately 74%.
Source: https://saylortracker.com/
Earnings results for the second quarter of 2024: net loss of 123 million dollars
As mentioned, with the start of August MicroStrategy has published the financial results recorded in the second quarter of the year, highlighting losses not related to acquisitions of Bitcoin operations.
In total, the company reported revenue of 111.4 million dollars in the last 3 months, down 7% year-over-year. The revenue comes 55% from customer support, 22% from subscription services, 8% from product licenses, and 15% from various other services.
It is worth noting how subscription services generated a revenue of 24.1 million dollars in the last quarter, growing by 21% year-on-year.
The billings of non-GAAP subscriptions (ratio between dividends and net income) have given shareholders dividends of 33.4 million dollars, +45% YoY.
Despite this, the profit of the pro-bitcoin company MicroStrategy is negative in the second quarter and records a net loss of 123 million dollars.
The results highlight significant liabilities of 5.74 dollars per share, exceeding analysts’ expectations and at the same time the performance of the 2nd quarter 2023.
Last year during this period MicroStrategy reported a positive profit of 22 million and a revenue of 120 million dollars.
Despite the lackluster financial results, MicroStrategy in the last quarter continued its accumulation of Bitcoin by purchasing as many as 12,222 coins, for 805 million dollars.
In its latest earnings presentation, the business intelligence company also introduced a new indicator called “Bitcoin Yield”.
This represents the percentage change over time in the ratio between the company’s Bitcoin holdings and its diluted shares outstanding.
The diluted shares outstanding include all the company’s common shares and all additional shares created by convertible securities or by exercising stock options.
Currently, the Bitcoin Yield is 12.2% year-to-date, while our future target is a rate between 4 and 8% annually.
As written in a note by the MicroStrategy team:
“The company uses BTC Yield as a KPI to help evaluate the performance of its bitcoin acquisition strategy in a way that the Company believes is beneficial to shareholders”
MicroStrategy: Michael Saylor is more bullish than ever on Bitcoin
Michael Saylor, executive chairman of MicroStrategy, continues undeterred with his mission of accumulating Bitcoin and “orange-pilling,” highlighting an extremely bullish spirit.
His company is so bull on the crypto asset that it has stated that it will file a new registration form for a $2 billion stock offering.
The move is intended to raise additional capital, which will most likely be used to buy more Bitcoin on the market.
Saylor in a recent post on X revealed what his long-term future prediction is for 20245 on the digital asset.
The bear case sees Bitcoin appreciating up to 3 million dollars in the next 21 years.
In the base case, however, the crypto will grow up to 13 million dollars and in the bull case we will see it at 49 million dollars. If things were to go for the best, as anticipated by Saylor, Bitcoin could grow by as much as 750 times the current price.
$13M is the #Bitcoin Base Case. pic.twitter.com/0Wz60P2C5n
— Michael Saylor⚡️ (@saylor) July 27, 2024
According to the pro-Bitcoin magnate, the broad global market still holds many opportunities for the crypto sector.
Comparing the breadth of other investment sectors with that of Bitcoin, we notice that indeed we are still “early”.
The total global asset value amounts to 900 trillion dollars, while the crypto exchanges amount to only 1.3 trillion dollars.
Only the Real Estate market is worth over 250 times Bitcoin, with Bond, Money, and Equities far exceeding its capitalization.
MicroStrategy Title (MSTR): excellent performance in the last 4 years, stock split coming
Since MicroStrategy adopted the “Bitcoin Standard” in August 2020 and began its mad rush to buy BTC, the company’s shares have recorded excellent performance.
At the time of writing, the title MSTR is priced at 1511 dollars, down about 6% compared to the last 24 hours. In after-hours trading, the stock rebounded by 1.1% following the release of the company’s earnings results for Q2 2024.
Very interesting to observe how the MicroStrategy stock in the last 4 years has overperformed all the Key assets and stock indices, including Bitcoin itself, Nasdaq, S&P500 etc.
In the same period, it has grown at a higher rate than even the major tech stocks like Nvidia (albeit slightly), Tesla, Google, Microsoft, etc.
Since the beginning of the year, MSTR is up by 120% while compared to a year ago, prices have increased by 271%, reflecting the positive effect of Bitcoin’s rise.
Generally, this stock has extreme volatility, and it moves more or less in a manner correlated to the actions of Bitcoin.
It is worth noting that MicroStrategy recently announced a phase of stock split at a 10:1 ratio, effective from August 7.
This means that if today you own an MSTR share at the price of 1511 dollars, from August 7 you will have in your portfolio 10 MSTR shares worth 151.1 dollars.
This move serves to make the titles more attractive to small investors, who are not inclined to shell out over 1500 dollars for a single share.
The capitalization of the stock obviously does not change, but only the perception of the price to the public.
$MSTR announces 10-for-1 Stock Split https://t.co/u7sIjWc9we
— Michael Saylor⚡️ (@saylor) July 11, 2024