- The 226,500 bitcoins that MicroStrategy had as of July 31 were worth $8.3 billion, or $36,821 apiece.
- With $111.40 million in sales, MicroStrategy posted quarterly losses of $5.74 per share, a 7% decline from the previous year.
MicroStrategy announced on Thursday that it has added a new key performance indicator to its bitcoin strategy and since the start of the second quarter, it has purchased 12,222 bitcoin worth $805.2 million.
As of July 31, their total bitcoin holdings, 226,500 BTC +0.70%, cost $8.3 billion, or $36,821 per bitcoin.
The company reports that their Bitcoin yield for the current year is 12.2%, and it intends to aim for 4% to 8% annual growth over the next three years.
The percentage change in MicroStrategy’s outstanding diluted shares over time divided by its bitcoin holdings is known as the BTC yield. The phrase “diluted shares outstanding” describes all of the actual common stock of the business in addition to any future shares that can be granted through the settlement of all restricted and performance stock units, exercising all stock options, and converting all convertible notes. This measure shows the proportion of the company’s total share capital to its bitcoin holdings.
According to the statement, the company uses BTC Yield as a KPI to evaluate how well its strategy of purchasing bitcoin in a way that it thinks would benefit shareholders is working. The Company thinks that by issuing more shares of its common stock or securities convertible to common stock, this KPI will help investors better comprehend its decision to support the purchase of bitcoin.
According to the corporation, the Bitcoin yield KPI is neither a financial or liquidity metric, an operational performance metric, or a measure that is comparable to “yield” in a conventional financial context.
CEO Phong Le stated in a press release that “we are extremely optimistic about adoption” in light of the increased awareness of bitcoin and the growing support for the ecosystem from institutions and politicians of all stripes that are on show at the Bitcoin 2024 Conference in Nashville. Our cloud-based BI and AI software is also being used more widely throughout the globe, and we’ve seen another quarter of double-digit growth in subscription revenue and billings.
With $111.40 million in sales, MicroStrategy posted quarterly losses of $5.74 per share, a 7% decline from the previous year. These considerably missed projections that called for a quarterly loss of 78 cents per share and revenue of $119.3 million, according to a Bloomberg survey of analysts.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
