"In the second quarter, MicroStrategy reported normalized EPS of $6.76, easily surpassing consensus estimates and marking its strongest underlying operating performance to date. On a GAAP basis, EPS jumped to $32.60, primarily driven by fair-value revaluation of its Bitcoin holdings under the Financial Accounting Standards Board's new mark-to-market rules. As of July 31, the company held 628,791 Bitcoin, representing about 3% of total global supply."
"Since 2020, Executive Chairman Michael Saylor and CEO Phong Le have repositioned MicroStrategy as what they call a "Bitcoin development company." The firm's strategy now includes perpetual preferred equity securities backed by Bitcoin-financial instruments that Saylor says could ultimately establish a "Bitcoin yield curve" for global investors."
"What to Expect When MicroStrategy Reports Key Areas to Watch 1. Bitcoin Holdings and Fair-Value Accounting- This will be the company's second full quarter reporting under fair-value accounting standards. While Bitcoin's price was largely stable through Q3, any revaluation impact on book equity will be closely analyzed."
MicroStrategy reports fiscal third-quarter results after the close following a strategic shift from business intelligence software to the largest publicly traded Bitcoin treasury. The company posted normalized Q2 EPS of $6.76 and GAAP EPS of $32.60, with the GAAP increase driven by fair-value revaluation of Bitcoin under new FASB mark-to-market rules. MicroStrategy held 628,791 Bitcoin as of July 31, roughly 3% of global supply. Leadership repositioned the firm as a Bitcoin development company and introduced Bitcoin-backed perpetual preferred equity strategies aimed at creating a potential Bitcoin yield curve. Key monitoring points include Bitcoin holdings and fair-value accounting impacts.
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