Will MicroStrategy's Bitcoin yield drop further?
š MARKET OVERVIEW
MicroStrategy's earnings for the second quarter resulted in a staggering 8.22 billion net loss. This drastic change in fortunes comes just a year after the company reported a 10 billion profit. The drastic shift in profitability may be attributed to the company's heavy reliance on Bitcoin investments.
š” KEY INSIGHTS
The company's Bitcoin yield, a new metric introduced, is currently running below the set hurdle of 10.8%. For the year, MicroStrategy reported a 4.5% bitcoin yield, a significant drop from its previous performance. This decrease in yield could potentially impact the company's ability to meet its financial obligations.
š YOUR PLAY
Considering MicroStrategy's current financial situation, do you believe the company's Bitcoin yield will continue to drop below the 10.8% hurdle, or will they be able to turn their fortunes around? What price target do you think the company's stock will hit in the next quarter?
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NFA Ā· DYOR Ā· Not financial advice