MicroStrategy Incorporated (Nasdaq: MSTR) has reported its financial results for Q2 2024, showcasing a significant increase in its Bitcoin holdings. The company acquired 12,222 bitcoins during the quarter at an average price of $65,882 per bitcoin. This brings their total holdings to 226,500 BTC, purchased for $8.3 billion at an average cost of $36,821 per bitcoin as of July 31. In July alone, MicroStrategy added an additional 169 BTC for $11.4 million, according to an announcement by Michael Saylor.
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
President and CEO Phong Le emphasized the company’s commitment to its Bitcoin strategy, introducing “BTC Yield” as a key performance indicator. This metric measures the percentage change in the ratio of the company’s Bitcoin holdings to its assumed diluted shares outstanding. Year-to-date, MicroStrategy has achieved a BTC Yield of 12.2% and is targeting an annual yield of 4-8% from 2025-2027.
In addition to its Bitcoin strategy, MicroStrategy experienced a 21% year-over-year increase in subscription services revenues, totaling $24.1 million. The company also raised $800 million through a convertible senior notes offering and announced a 10-for-1 stock split effective August 7, 2024.
CFO Andrew Kang highlighted the strategic growth in Bitcoin holdings, stating, “Since the beginning of Q2, we grew our bitcoin holdings by adding 12,222 bitcoins through proceeds from our capital markets activities and excess cash. Additionally, we announced a 10-for-1 stock split earlier this month. We continue to closely manage our equity capital and are filing a registration statement for a new $2 billion at-the-market equity offering program. Through our use of intelligent leverage, we have again achieved a ‘BTC Yield’ of 12.2% year-to-date, which we believe demonstrates significant bitcoin accretion to shareholders.”
As of June 30, 2024, the original cost basis and market value of MicroStrategy’s Bitcoin were $8.3 billion and $14 billion, respectively, reflecting an average cost per Bitcoin of $36,798 and a market price of $61,926.69.
Michael Saylor’s Bold Bitcoin Predictions for 2045
In a daring prediction, Michael Saylor shared his expectations for Bitcoin’s future price in a post on July 27. Saylor outlined three scenarios for Bitcoin’s price by 2045:
- Bearish Scenario: Bitcoin reaches $3 million, translating to a market cap of $68 trillion and representing 2% of global assets.
- Base Scenario: Bitcoin hits $13 million, gaining a 7% market dominance with a market share valued at $280 trillion.
- Bullish Scenario: Bitcoin soars to $49 million per unit, with a market cap of $1.030 trillion, representing 22% of all financial assets worldwide.
These projections add to the positive sentiment in the crypto market. Additionally, US Republican Presidential candidate Donald Trump has recently reiterated his commitment to the crypto industry, aiming to make the US a “Bitcoin superpower” if elected. The potential rise in the adoption of Bitcoin spot ETFs also suggests further gains for BTC in the coming years.
