MicroStrategy Plans to Buy $2 Billion in Bitcoin!

Bittime - The MicroStrategy company is back in the spotlight. This Virginia-based company has just filed documents with the United States Securities and Exchange Commission (SEC) to raise $2 billion (around IDR 31.4 trillion) through the sale of class A shares.

The funds raised are planned to be used for "general corporate purposes, including the purchase of Bitcoin." 

The filing does not detail an exact timetable for share sales or what percentage of funds will be allocated to Bitcoin purchases. However, MicroStrategy has clearly stated its intention to strengthen their Bitcoin holdings.

Increased Bitcoin Ownership MicroStategy

MicroStrategy reported a significant increase in Bitcoin holdings in its Q2 2024 financial report. Since the start of this quarter, the company has acquired 12,222 Bitcoins at an average price of $65,882 (around IDR 1 billion) per Bitcoin.

Read also: Bitcoin Crash Prediction: BTC Whales Sell $600 Million Worth of Assets

This acquisition brings their total holdings to 226,500 BTC. These crypto assets were purchased for a total of $8.3 billion (around IDR 130 trillion) at an average price of $36,821 (around IDR 580 million) per Bitcoin. 

In fact, specifically in July, MicroStrategy increased their holdings with 169 BTC worth $11.4 million (around Rp. 179 billion).

MicroStrategy Financial Performance and Bitcoin Targets

Beyond their Bitcoin strategy, MicroStrategy also saw a 21% year-on-year increase in revenue from subscription services. The company's total revenue was recorded at $24.1 million (around Rp. 378 billion). 

This company also managed to raise $800 million (around Rp. 12.5 trillion) through a convertible senior bond offering. Furthermore, the company announced a stock split with a ratio of 10 to 1 effective on August 7 2024.

Balso: What is a Bitcoin Faucet and How It Works

However, MicroStrategy still reported a net loss of $123 million (around IDR 1.9 trillion) in Q2. This is a slight improvement compared to a loss of $137 million (around IDR 2.1 trillion) in the same quarter in 2023.

MicroStrategy President and CEO, Phong Le, highlighted the introduction of “BTC Yield” as a key performance indicator. This indicator measures the percentage change in the ratio of Bitcoin holdings to estimated diluted shares outstanding.

Throughout this year, MicroStrategy has achieved a BTC Yield of 12.2%, with an annual yield target of 4-8% from 2025 to 2027. However, MicroStrategy's share price itself experienced a decline of 6.36% to $1,511 (around IDR 23 million ) in the last 24 hours.

MicroStrategy's move to increase Bitcoin ownership will of course continue to be in the spotlight. Will their aggressive strategy pay off? Let's wait for the continuation.