Microstrategy Expands Bitcoin Holdings

Microstrategy Inc. (Nasdaq: MSTR) reported its financial outcomes for Q2 on Thursday. The company, known for being the largest corporate holder of BTC

Nasdaq-listed business intelligence firm Microstrategy has added 12,222 bitcoins to its coffers in Q2, bringing its total BTC stash to 226,500. During the company’s earnings call on Thursday, executives discussed the company’s bitcoin strategy, financial maneuvers, and expressed optimism about the future of BTC.

Microstrategy Expands Bitcoin Holdings

Microstrategy Inc. (Nasdaq: MSTR) reported its financial results for Q2 on Thursday. The company, which is known for being the largest corporate holder of BTC, has grown its bitcoin stash once again.

“In July, Microstrategy purchased an additional 169 BTC for $11.4 million, bringing our total bitcoin holdings to 226,500 BTC,” Microstrategy’s executive chairman Michael Saylor shared on the social media platform X on Thursday.

During the company’s earnings call, Microstrategy revealed that 12,222 bitcoins were acquired since the beginning of Q2 for $805.2 million, or $65,882 per BTC. As of July 31, the company’s 226,500 bitcoin holdings were acquired at a total cost of $8.3 billion, or $36,821 per bitcoin.

Microstrategy CEO Phong Le highlighted the firm’s focus on maintaining a “BTC Yield,” aiming for an annual increase of 4%-8% over the next three years. He also noted the company’s optimism about the increasing support for bitcoin from politicians and institutions.

“We are very optimistic about the future of bitcoin, and we believe that our BTC Yield strategy will generate significant value for our shareholders,” the CEO stated, adding:

We continue to be encouraged by the increasing support for bitcoin from politicians and institutions, and we believe that this will ultimately lead to the adoption of bitcoin as a primary treasury asset.

CFO Andrew Kang detailed the financial maneuvers that have bolstered Microstrategy’s bitcoin holdings. In Q2, the firm also announced a 10-for-1 stock split effective Aug. 7. Kang highlighted the successful raising of $800 million through 2.25% convertible senior notes and the redemption of $650 million in notes due 2025.

“During the quarter, we also raised an additional $800 million through the 2.25% convertible senior notes and redeemed $650 million of our 6.25% senior notes due 2025,” the CFO explained.

“These transactions, together with our bitcoin purchases, increased our cash on hand to $658 million at the end of Q2 2024.”

Despite the gains in bitcoin holdings, the company faced a net loss of $102.6 million for Q2, largely due to digital asset impairment losses.

Saylor recently shared his bitcoin price prediction, stating that by 2045, BTC’s price could range from $3 million in a bear case to $49 million in a bull case, with a base case of $13 million. He emphasizes the cryptocurrency’s potential to revolutionize the global economy and advocates for its adoption as a primary treasury asset to ensure economic stability and wealth accumulation.

The Microstrategy executive argues that the U.S. government should hold the majority of the world’s bitcoin to strengthen the U.S. dollar.

“I think that the U.S. government should own most of the world’s bitcoin to strengthen the U.S. dollar,” Saylor insisted in a recent interview.

“I think that bitcoin will become the primary treasury asset in the world, ensuring economic stability and enabling wealth accumulation.”

Saylor believes that bitcoin is the “hardest money ever created” and that it will eventually become the “apex treasury asset in the world.” He further stated:

“When that happens, I think the price of bitcoin will go up dramatically, reaching $3 million in a bear case, $13 million in a base case, and $49 million in a bull case by 2045.”

What do you think about Microstrategy’s continued investment in bitcoin? Let us know in the comments section below.