MicroStrategy reported a internet lack of $123 million for the second quarter, an enchancment from a lack of $137 million within the prior quarter.
The corporate narrowed its quarterly losses on the again of decrease impairment losses and a strategic enhance in its bitcoin holdings, which now whole 226,500 BTC.
Shares of MicroStrategy rose 4.18% in after-hours buying and selling after the earnings announcement, reflecting investor confidence within the firm's strategic route and monetary efficiency
Adjusted loss per share for the quarter was $7.62, barely higher than the prior quarter's lack of $8.26 per share. Comparatively, the agency reported EPS of $2.35 in the identical quarter of 2023.
Second-quarter income was $111.4 million, lacking the consensus estimate of $122 million and down from $115.2 million within the prior quarter and $120.4 million in the identical interval final yr. In the meantime, the agency reported a 21% year-over-year enhance in subscription income, totaling $24.1 million for the quarter.
MicroStrategy continued to develop its Bitcoin portfolio in the course of the second quarter, buying 12,222 BTC at a median worth of $65,882 every. The corporate additional elevated its stake in July by buying an extra 169 BTC for $11.4 million.
The corporate's whole holdings are 226,500 BTC, purchased for $8.3 billion at a median worth of $36,821 per bitcoin as of July 31.
MicroStrategy has launched “BTC Yield” as a brand new KPI to measure the proportion change within the ratio of Bitcoins held to projected diluted shares excellent. Based mostly on this metric, the corporate has returned 12.2% since inception of BTC, with an annual goal return of 4-8% from 2025-2027.
The corporate additionally not too long ago raised $800 million by a convertible securities providing and introduced a 10-for-1 inventory break up efficient Aug. 7.
MicroStrategy continued to fastidiously handle its fairness capital and filed a registration assertion for a brand new $2 billion preliminary public providing program.
MicroStrategy's second-quarter outcomes spotlight the corporate's efforts to stability vital bitcoin holdings with the expansion of its software program enterprise. The longer term efficiency of the agency will rely upon navigating the volatility of the crypto market and the event of its enterprise evaluation companies.
