September 28, 2021

MicroStrategy’s Bitcoins Dominate Its Market Cap

MicroStrategy reported its June quarter results on Thursday with revenue and earnings exceeding expectations. However, it is its bitcoin holdings that are driving its stock price and market cap.

Business is finally seeing growth

MicroStrategy had seen its revenue decline year over year for the past six years. However, second quarter revenue grew 13.4% to $125 million or 10% on a constant currency basis. For the first half this year revenue has grown almost 12% for a total of $248 million.

Non-GAAP operating income, which excludes share-based compensation and more importantly, impairment losses and gains from its bitcoin holdings, more than doubled from $8.6 million in the June 2020 quarter to…

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