MicroStrategy Q2 Earnings On Deck: What Investors Need To Know Before The ‘Bitcoin Development Company’ Reports After The Bell
By Benzinga
MicroStrategy Inc (NASDAQ:MSTR) is set to report financial results for the second quarter after the bell on Thursday. Here’s a look at what you need to know ahead of the print.
What To Know: MicroStrategy is expected to report a second-quarter loss of 11 cents per share on quarterly revenue of $122.6 million, according to analyst estimates from Benzinga Pro.
In the comparable quarter last year, MicroStrategy missed revenue estimates by about 4.7%, but delivered an upside earnings surprise of approximately 230%. The company said it held a total of 152,800 Bitcoin (CRYPTO: BTC) as of July 31, 2023. MicroStrategy’s Bitcoin holdings were up to 226,331 as of June 20, 2024.
In the first quarter of 2024, MicroStrategy’s revenue fell 5.5% year-over-year to $115.246 million, missing consensus estimates of $121.725 million. The company said it raised over $1.5 billion in the quarter by executing on its capital markets strategy through two convertible debt offerings.
“As the world’s first Bitcoin Development Company, MicroStrategy is committed to the continued development of the bitcoin network through our activities in the financial markets, advocacy and technology innovation,” the company said last quarter.
MicroStrategy shares trended lower following the convertible debt offerings before analysts stepped in and issued positive updates on the name.
Bernstein initiated coverage on MicroStrategy last month with an Outperform rating and set a price target of $2,890. Maxim Group also initiated coverage on MicroStrategy. The firm has a Buy rating and price target of $1,835.
TD Cowen maintained MicroStrategy with a Buy rating and raised the price target from $1,450 to $1,880, and Canaccord Genuity maintained a Buy rating, but lowered the price target from $2,047 to $1,826.
MicroStrategy stock is heavily influenced by the price of Bitcoin. Executive chairman Michael Saylor spoke at the Bitcoin 2024 Conference last week. He laid out a base case for Bitcoin to rise to $13 million per coin by 2045.
If his prediction were to come true, Bitcoin would have a market cap of about $280 trillion and account for approximately 7% of global wealth. Saylor added that Bitcoin could be worth as much as $49 million per coin or as little as $3 million per coin at that time.
It’s worth noting that MicroStrategy will enact a 10-for-1 stock split by means of a dividend to holders of record as of the market close on Aug. 1. After the market close on Aug. 7, holders of MicroStrategy stock will receive nine additional shares for each share held. MicroStrategy is expected to begin trading on a split-adjusted basis at the market open on Aug. 8.
MSTR Price Action: MicroStrategy shares are up approximately 142% year-to-date heading into the print. The stock was down 5.4% at $1,527.23 at the time of publication Thursday, according to Benzinga Pro.
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