New York, Monday August 5, 2024-MicroStrategy plans to sell up to $2 billion in class A shares to invest further in Bitcoin and for other corporate purposes, according to a regulatory filing with the U.S. Securities and Exchange Commission on Wednesday, August 1, 2024.
The Virginia-based company, led by Bitcoin advocate Michael Saylor, has not specified the timeline for these sales or how much of the proceeds will be directed toward purchasing Bitcoin.
This announcement aligns with the release of MicroStrategy’s second-quarter financial results, which revealed a quarterly loss due to an impairment charge on its Bitcoin holdings, valued at approximately $13.77 billion.MicroStrategy Inc. on Wednesday increased its bitcoin holdings to 226,500 coins, the company announced. The business intelligence firm also reported a quarterly loss due to impairment charges on its digital assets. See its Q2 Report here.
The company spent $805.2 million to acquire 12,222 bitcoins during the quarter. MicroStrategy introduced a new metric, “BTC Yield,” to measure the performance of its bitcoin holdings against its share count.
However, MicroStrategy reported a net loss of $102.6 million for the quarter. The company is implementing a 10-for-1 stock split, effective Aug. 7.
Despite the loss, the company acquired 12,222 Bitcoin during the quarter, increasing its total holdings to 226,500 BTC.
MicroStrategy described their Bitcoin strategy as “successful,” citing a 70% increase in the market value of their holdings.
The move underscores the company’s commitment to Bitcoin, even as broader market sentiment remains cautious.
The announcement comes amid a volatile market, influenced by factors such as the U.S. government’s sale of seized Bitcoin, Federal Reserve decisions, and weak economic data, which have contributed to a decline in Bitcoin’s price. Despite this, industry leaders remain optimistic about Bitcoin’s long-term potential.
