MicroStrategy Financial Report: Introduces "Bitcoin Yield" KPI Metric, Announces $2 Billion Stock Offering to Buy Bitcoin

The Bitcoin development company MicroStrategy announced its Q2 financial report, revealing its continuous accumulation of Bitcoin. The company now holds a total of 226,500 Bitcoins with an average cost of $36,821 per Bitcoin, totaling $8.34 billion. The unrealized profit amounts to an impressive $6.3 billion.

Introducing "Bitcoin Yield" KPI Indicator

Since the beginning of the second quarter, MicroStrategy has acquired 12,222 bitcoins for $805 million, bringing its total bitcoin holdings to 226,500 with an average cost of $36,821 per bitcoin and a total cost of $8.34 billion.

MicroStrategy has introduced a new key performance indicator (KPI) for its bitcoin strategy called "Bitcoin Yield." Its year-to-date Bitcoin Yield stands at 12.2%, with a target of 4% to 8% annual growth over the next three years.

Bitcoin Yield is the ratio of bitcoins held by MicroStrategy to its diluted share count. Diluted shares issued include all actual shares of the company's common stock as well as any additional shares generated through the conversion of all convertible notes, exercise of all stock options, and settlement of all restricted and performance stock units. This metric shows the comparison between the company's bitcoin holdings and its potential total share count.

The company uses Bitcoin Yield as a key performance indicator to help evaluate the performance of its bitcoin acquisition strategy in a manner it believes is beneficial to shareholders. MicroStrategy believes that this KPI can complement investors' understanding and decision-making regarding purchasing bitcoins by issuing additional common shares or instruments convertible into common shares.

Software Business Incurs Losses, Bitcoin Not Recognized at Fair Value

MicroStrategy's software business continues to operate at a loss, with a 7.5% year-over-year decrease in revenue to $111.1 million. The operating loss from operations reached $18.7 million.

Despite the unrealized profit of $6.3 billion as Bitcoin surged to $65,000, MicroStrategy still recognized a digital asset impairment of up to $181.5 million and did not recognize the value of Bitcoin at fair value, which is not reflected in MicroStrategy's financial statements.

MicroStrategy Stock Split Effective, Issuing 2 Billion New Shares

The previously announced 10-for-1 stock split by MicroStrategy will take effect on August 7. The stock price has already risen by 118% year to date.

Additionally, MicroStrategy has disclosed a new $20 billion market stock issuance plan in a registration statement, with the net proceeds from the offering intended for general corporate purposes, including bitcoin acquisitions, operational funds, and potential market conditions for repurchasing or repaying debt.