MicroStrategy Now Holds 226,500 Bitcoin: Introduces New BTC Yield Metric

Published: Aug 2, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

MicroStrategy has released its financial results for the second quarter of 2024. The business intelligence firm has highlighted major developments in its Bitcoin strategy and overall financial performance.

Key points:

  • Bitcoin holdings increased to 226,500, with a market value 70% above the cost basis.
  • Introduction of a new “BTC Yield” metric, targeting 4-8% annual growth
  • Successful raise of $800 million through convertible note offerings.
  • Subscription services revenue grew by 21.1% year-over-year.

MicroStrategy has announced that the company’s Bitcoin stash now stands at 226,500 coins. The current value of the holdings is around $14.5 billion.

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MicroStrategy introduces new BTC Yield metric

MicroStrategy has introduced a new key performance indicator (KPI) called “BTC Yield.” This metric aims to measure the company’s efficiency in acquiring Bitcoin in a manner that benefits shareholders.

The company is targeting an annual BTC Yield of 4-8% from 2025 to 2027. They saw a 7.4% decrease in total revenues compared to the same quarter last year. Additionally, its subscription service revenue increased by 21.1%.Ā 

MicroStrategy reported digital asset impairment losses of $180.1 million for the quarter, contributing to a net loss of $102.6 million.  

MicroStrategy has also announced a 10-for-1 stock split. This decision comes as the company’s stock price has seen appreciation, largely driven by its Bitcoin holdings.

The company’s CFO, Andrew Kang, highlighted MicroStrategy’s use of “intelligent leverage” to achieve a year-to-date BTC Yield of 12.2%.  

ā€œIn Q2, we successfully raised an additional $800 million through our offering of 2.25% convertible senior notes due 2032 and called for redemption our $650 million convertible senior notes due 2025, said Andrew.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.