MicroStrategy’s Q2 Report: Huge Bitcoin Gains and Rising Financial Losses
Is More Bitcoin Buying Ahead?
Business intelligence firm MicroStrategy recently acquired an additional 12,222 Bitcoin for $805 million in the second quarter of this year. This purchase increased the company's total Bitcoin holdings to 226,500 BTC, valued at $14.7 billion at current prices.
Q2 Financial Performance
MicroStrategy posted declining revenue of $111.4 million for Q2. Source: MicroStrategy
In its Q2 earnings call, MicroStrategy reported significant losses of $5.74 per share on quarterly revenue of $111.4 million. This represents a 7% decline compared to the same period last year. Analyst expectations were much higher, forecasting a loss of $0.78 per share and revenue of $119.3 million, according to a Bloomberg survey.
Net Loss Overview
MicroStrategy reported a net loss of $123 million for Q2. Source: MicroStategy.
The firm revealed a net loss of $123 million for Q2, which is a slight improvement from the $137 million net loss reported in the same quarter last year. Despite the financial challenges, MicroStrategy continues to invest heavily in Bitcoin. The total Bitcoin holdings of 226,500 BTC were acquired at a cost of $8.5 billion, averaging $36,821 per Bitcoin.
Future Bitcoin Purchases?
MicroStrategy plans to file a registration form for a $2 billion at-the-market equity offering to raise further capital. While the specific use of this capital was not disclosed, the company has historically used raised funds to purchase more Bitcoin.
At the time of writing, Bitcoin was trading at $64,367.54, showing a 1.19% increase over the last 24 hours.
Stock Market Reaction
MicroStrategy's shares are currently trading at $1,500, reflecting a 6% drop on the day of the earnings announcement. However, the share price did experience a 1.1% bounce in after-hours trading following the Q2 earnings release, according to TradingView data.
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