Michael Saylor's MicroStrategy Plans to Raise $2B to Buy More Bitcoin

The company has significantly increased its Bitcoin holdings, acquiring 12,222 BTC in Q2 2024 alone.
BSCN
August 2, 2024
MicroStrategy is doubling down on its cryptocurrency strategy. On August 1, the Virginia-based company filed with the U.S. Securities and Exchange Commission (SEC) to raise $2 billion by selling its class A shares.
In July, @MicroStrategy acquired an additional 169 BTC for $11.4 million and now holds 226,500 BTC. Please join us at 5pm ET as we discuss our Q2 2024 financial results, the outlook for $BTC, and our #Bitcoin development strategy. $MSTRhttps://t.co/cfGPc42jfM
— Michael Saylor⚡️ (@saylor) August 1, 2024
The funds are earmarked for “general corporate purposes, including the acquisition of Bitcoin.”
The filing did not specify the exact timeline for the share sale or the amount of proceeds to be used for Bitcoin purchases. However, it stated the company’s intention to use the raised funds to bolster its Bitcoin holdings.
Increased Bitcoin Holdings
MicroStrategy reported significant growth in its Bitcoin holdings in its Q2 2024 financial results. Since the beginning of the quarter, the company acquired 12,222 bitcoins at an average price of $65,882 per bitcoin.
This acquisition brought its total holdings to 226,500 BTC, purchased for $8.3 billion at an average cost of $36,821 per bitcoin. The company purchased an additional 169 BTC for $11.4 million in July alone.
Financial Performance
Beyond its Bitcoin strategy, MicroStrategy saw a 21% year-over-year increase in subscription services revenues, totaling $24.1 million.
The company successfully raised $800 million through a convertible senior notes offering and announced a 10-for-1 stock split effective August 7, 2024.
However, the company reported a net loss of $123 million in Q2, a slight improvement from the $137 million loss in the same quarter of 2023.
MicroStrategy President and CEO Phong Le highlighted the introduction of "BTC Yield" as a key performance indicator, measuring the percentage change in the ratio of Bitcoin holdings to assumed diluted shares outstanding.
Year-to-date, MicroStrategy achieved a BTC Yield of 12.2%, targeting an annual yield of 4-8% from 2025 to 2027.
MicroStrategy's shares fell 6.36% to $1,511 in the last 24 hours.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCN. The information provided in this article is for educational and entertainment purposes only and should not be construed as investment advice, or advice of any kind. BSCN assumes no responsibility for any investment decisions made based on the information provided in this article. If you believe that the article should be amended, please reach out to the BSCN team by emailing [email protected].
Latest News
Crypto Project & Token Reviews
Project & Token Reviews
Comprehensive reviews of crypto's most interesting projects and assets
Learn about the hottest projects & tokens
Latest Crypto News
Get up to date with the latest crypto news stories and events