MicroStrategy Adds 169 BTC to Holdings and Introduces New KPI “Bitcoin Yield”

On August 1, MicroStrategy founder Michael Saylor announced that in July, the company acquired an additional 169 BTC for $11.4 million and now has a total of 226,500 BTC.

The company continues to focus on its bitcoin acquisition strategy. However, it suffered significant impairment losses due to BTC price fluctuations, resulting in a second consecutive quarterly loss.

The world’s largest corporate holder of BTC is now worth $14.6 billion at current spot prices and wants more.

Total revenue for the second quarter was $111.4 million, down 7.4% from the second quarter of 2023 and below analysts’ forecasts of $119.3 million. gross profit He came in 80.5 million dollars.

Bitcoin Performance KPI has been introduced

The book value of its BTC holdings during the period was $5.68 billion, reflecting accumulated impairment losses of $2.64 billion. However, the original cost base was $8.33 billion, with an average cost per bitcoin of $36,798.

MicroStrategy Chairman and CEO Phong Le said the company’s holdings were valued at “70% higher than our cost basis” before adding:

“We remain focused on our Bitcoin development strategy and intend to continue achieving a positive ‘BTC Yield’, which is a new KPI we are introducing, targeting 4-8% per year, for each of the next three years” .

The key Bitcoin performance indicator introduced by MicroStrategy represents the period-to-period percentage change in the ratio of the company’s BTC holdings to its assumed diluted shares outstanding.

It compares the company’s BTC holdings to its total potential shares outstanding, including actual shares outstanding plus all potential shares of convertible notes, stock options and other equity awards.

MicroStrategy will use the KPI to evaluate the performance of its bitcoin strategy in a way that the team believes is rewarding to shareholders. BTC 2024 yield is 12.2% year to date, and the company is targeting an annual BTC return of 4-8% from 2025-2027.

Variable income offer

The company also reported that it raised $800 million through 2.25% convertible senior notes due 2032 and redeemed $650 million of convertible senior notes due 2025.

MicroStrategy CFO Andrew Kang also announced an equity offering:

“We continue to closely manage our share capital and are filing a registration statement for a new $2 billion capital market offering program.”

In July, Saylor announced that the company will soon undergo a 10-for-1 stock split, which will make it more affordable for smaller investors to gain minimal exposure to the company’s stock.

Shares of MicroStrategy ( MSTR ) fell 6% on the day below $1,500, but recovered to settle at $1,569 in after-hours trading.

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