MicroStrategy posted a net loss of $123 million in the second quarter, an improvement from a loss of $137 million in the previous quarter.
The company narrowed its quarterly loss due to lower impairment losses and a strategic increase in its Bitcoin holdings, which now total 226,500 BTC.
Following the earnings release, MicroStrategy's stock price was up 4.18% in after-hours trading at the time of writing, reflecting investor confidence in the company's strategic direction and financial performance.
Adjusted loss per share for the quarter was $7.62, slightly better than a loss of $8.26 per share in the prior quarter. By comparison, the company reported earnings per share of $2.35 for the same quarter in 2023.
Second-quarter revenue was $111.4 million, below the consensus estimate of $122 million and down from $115.2 million in the previous quarter and $120.4 million in the same period last year. Meanwhile, the company reported subscription services revenue increased 21% year over year to $24.1 million.
MicroStrategy continued to grow its Bitcoin portfolio in the second quarter, acquiring 12,222 BTC at an average price of $65,882 per coin. The company increased its holdings in July by acquiring an additional 169 BTC for $11.4 million.
The company's total holdings are 226,500 BTC, purchased at an average price of $36,821 per Bitcoin, or $8.3 billion, as of July 31.
MicroStrategy has introduced “BTC Yield” as a new key performance metric to measure the rate of change between Bitcoin holdings and assumed diluted shares outstanding. According to the metric, the company has achieved a BTC yield of 12.2% so far this year, with a target annual yield of 4-8% from 2025 to 2027.
The company also recently raised $800 million through a convertible note offering and announced a 10-for-1 stock split effective August 7th.
MicroStrategy continues to closely manage its capital and has filed a registration statement for a new $2 billion at-the-market public offering program.
MicroStrategy's second-quarter results highlight the company's efforts to balance its large Bitcoin holdings with the growth of its software business. The company's future performance will depend on weathering cryptocurrency market volatility while also improving its business analytics services.
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