Micro Strategy Financial Report: Second Quarter Losses Exceed Expectations, Plans to Issue New Stock

Second quarter loss exceeds expectations

MicroStrategy, a US listed company known for its large Bitcoin reserves, announced its second quarter financial report yesterday, with a significant loss of $5.74 per share and quarterly revenue of $111.4 million.

This data is lower than analysts' expectations. According to Bloomberg survey data, analysts expect a quarterly loss of $0.78 per share and revenue of $119.3 million. However, the company's net loss for the second quarter was $123 million, slightly improving from a net loss of $137 million in the same period last year.

Creating a new metric for 'Bitcoin Yield'

In terms of Bitcoin reserves, Micro Strategy purchased an additional 12222 bitcoins for $805 million in the second quarter of this year, bringing its total Bitcoin holdings to 226500 bitcoins.

In addition, the company has also released a new metric called "Bitcoin Yield", aimed at reflecting the percentage change over time in the proportion of Bitcoin held by micro strategies to their diluted circulating shares, demonstrating the ratio of the company's Bitcoin holdings to its potential total shares. Micro Strategy states that it will use Bitcoin yield as a KPI to help evaluate the performance of its Bitcoin buying strategy. The company believes that this approach can be used to help investors understand their decision to fund Bitcoin purchases through issuing additional common stock or convertible common stock tools.

Raise an additional 2 billion magnesium to buy Bitcoin

On the other hand, the previously announced 1-to-10 stock split plan by Micro Strategy will take effect on August 7th. The split will not change the company's valuation, but will significantly reduce the unit price of the stock. For retail investors, this will help smaller retail investors psychologically more easily purchase the stock.

In addition, the financial report also shows that Micro Strategy plans to submit a new $2 billion stock issuance plan, most likely to raise funds to purchase more Bitcoin.