Though many technology and cryptocurrency stocks have achieved massive success in 2024, with MicroStrategy (NASDAQ: MSTR) being a prime example as it is up 420.42% year-to-date (YTD), few have matched the feat accomplished by one nano-cap Bitcoin (BTC) miner.BTC Digital Ltd. (NASDAQ: BTCT) entered an incredible surge during the November 12 session and rallied 316.67% within a single session from its previous closing price of $2.52 to $10.50. At one point on Tuesday, the rally appeared even more remarkable a ...

MIAMI, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Defiance ETFs, a leading provider of thematic and leverage-focused exchange-traded funds, is thrilled to announce that its MSTX ETF (Daily Target 2X Long MSTR ETF) has surpassed $1 Billion in assets under management (AUM). This milestone underscores the strong investor demand and confidence in the product’s innovative approach to offering amplified exposure to MicroStrategy Inc. (MSTR), a company known for its substantial Bitcoin holdings and cutting-edge data analyt ...

MicroStrategy Inc. (NASDAQ: MSTR) has been riding the crypto wave, with its stock price surging alongside Bitcoin’s (BTC) recent all-time highs. Following the acquisition of an additional 27,200 BTC between October 31 and November 10 at an average price of $74,463 per coin, MicroStrategy now holds a substantial 279,420 BTC, valued at approximately $23 billion according to Bitcoin Treasuries.With Bitcoin currently trading around $87,000, this holding has positioned MicroStrategy as the top corporate Bitcoin ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any i ...

Core Viewpoint - Michael Saylor, Executive Chairman of MicroStrategy, is a leading advocate for Bitcoin, promoting it as "digital gold" and a superior alternative to traditional gold [1][2] Group 1: Bitcoin Investment and Market Dynamics - MicroStrategy has generated billions in profits since adopting the "Bitcoin Standard," establishing Saylor as a prominent figure in the Bitcoin community [2] - Saylor believes the current period represents a "Bitcoin gold rush" that began in January 2024 and will last until November 2034, when 99% of Bitcoin will be mined [2] - The fixed supply of Bitcoin is capped at 21 million, contrasting with fiat currencies, which can be printed without limit [3] Group 2: Impact of ETF Approval - The approval of Bitcoin ETFs has significantly increased demand from institutional investors, with Blackrock's iShares Bitcoin ETF surpassing its Gold ETF in assets within 10 months [4] - ETF approval solidifies Bitcoin's legitimacy, making it difficult for regulators to reverse their stance on the cryptocurrency [4] Group 3: Institutional Adoption - Bitcoin ETFs, with Coinbase as the custodial exchange, facilitate access for various entities, including companies, nation-states like El Salvador, and pension/mutual funds [5] Group 4: Political Developments - Senator Cynthia Lummis announced plans to build a U.S. Bitcoin Strategic Reserve, indicating growing political support for Bitcoin [6] Group 5: Market Timing - Historical data suggests that the optimal time to own Bitcoin is approximately 150 days after a "halving" event and close to presidential elections [7] Conclusion - Saylor's predictions regarding Bitcoin have proven accurate, supported by substantial investments and a strong bullish thesis for the cryptocurrency's future [9]

About this content About William Farrington William kickstarted his career as a researcher and reporter for a global legal publication, covering everything from public law to M&A. Before moving to Proactive Investors, he worked as a reporter for a major fintech company with a focus on cryptocurrency and blockchain technology. Harking from Queensland, Australia, William obtained first-class honours in journalism and media from Birkbeck University before going on to complete an MA in creative and critical ...

Financial Data and Key Metrics Changes - MicroStrategy reported a total Bitcoin market value of $18 billion as of the end of Q3 2024, holding 252,220 Bitcoins [6] - The company acquired an additional 25,889 Bitcoins at an average price of $60,839, totaling a purchase cost of $1.6 billion [7] - Year-to-date, the price of Bitcoin has appreciated significantly, driven by the approval of Spot Bitcoin Exchange Traded Products (ETPs) [7] - Software business revenues were $116 million, down 10% year-over-year, reflecting the transition from on-premise to cloud services [27] - Non-GAAP subscription billings grew by 93% year-over-year to $32.4 million, marking four consecutive years of double-digit growth [20][30] Business Line Data and Key Metrics Changes - The software business is transitioning to cloud offerings, with subscription services revenues now comprising approximately 24% of total revenues, having increased by 32% year-over-year [31] - Product license revenues are expected to decline further as the company shifts focus to cloud services [28][32] - The company reported strong cloud bookings, which helped offset lower product license contracts [29] Market Data and Key Metrics Changes - The market value of MicroStrategy's Bitcoin holdings was $16 billion as of September 30, 2024, with an average purchase price of $39,000 per Bitcoin [40] - The company is the largest corporate holder of Bitcoin globally, with a strategy focused on Bitcoin as a treasury reserve asset [6][10] Company Strategy and Development Direction - MicroStrategy aims to raise $42 billion in capital over the next three years, targeting $21 billion each in equity and fixed income capital primarily for Bitcoin acquisition [16][18] - The company has adopted a new descriptor as the world's first and largest Bitcoin treasury company, focusing on Bitcoin as its primary treasury reserve asset [10] - The strategic plan includes leveraging intelligent capital allocation to increase Bitcoin holdings while managing overall leverage [50][57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the maturation of Bitcoin as an institutional-grade asset class, citing increased regulatory recognition and institutional adoption [7] - The company anticipates continued strong demand for its cloud platform and expects subscription services revenues to grow in the long term despite short-term declines in total recognized revenue [21][24] - Management highlighted the importance of achieving a positive BTC yield, revising the target to 6% to 10% annually for the next three years [57][58] Other Important Information - The company redeemed $500 million in senior secured notes, resulting in all Bitcoin holdings becoming unencumbered [9][38] - MicroStrategy plans to adopt new FASB fair value accounting rules for Bitcoin holdings starting Q1 2025, which will impact retained earnings [40][41] Q&A Session Summary Question: What is the outlook for Bitcoin as a treasury reserve asset? - Management believes Bitcoin is becoming increasingly recognized as a digital capital asset, with significant institutional interest and adoption [61][62] Question: How does MicroStrategy's performance compare to traditional asset classes? - MicroStrategy has outperformed the S&P 500 and other asset classes significantly since adopting the Bitcoin standard, demonstrating the strength of Bitcoin as an investment [68][69] Question: What are the implications of the new capital raising strategy? - The new strategy aims to leverage capital markets effectively to enhance Bitcoin holdings while maintaining shareholder value through intelligent leverage [50][57]

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Bitcoin Holdings and Strategy - MicroStrategy held 252,220 bitcoins as of October 29, 2024, acquired at a total cost of $9.9 billion, with an average price of $39,266 per bitcoin[4, 19] - The market value of MicroStrategy's bitcoin holdings was approximately $18 billion as of October 29, 2024[4] - The company raised $1.1 billion via ATM class A common stock sales and $1.01 billion through 2028 convertible notes[4] - MicroStrategy repaid $500 million in senior secured notes due in 2028 and unencumbered 100% of its bitcoin holdings[4] - The company aims to continually acquire BTC while achieving positive BTC Yield[75] Financial Performance - Q3 2024 total revenues were $116.1 million, a 10% year-over-year decrease[16, 77] - Q3 2024 non-GAAP subscription billings increased by 93% year-over-year to $32.4 million[14, 77] - Q3 2024 subscription services revenues increased by 32% year-over-year[77] - The company reported a GAAP operating loss of $432.6 million in Q3 2024[16] Capital Structure and Debt - MicroStrategy has $4.3 billion in convertible debt outstanding[5] - The company's activities include bitcoin acquisitions using proceeds from equity and debt financings[5] - The company issued $1.01 billion convertible senior notes due 2028 and issued $1.1 billion shares of Class A common stock under ATM[21]

Bitcoin Holdings and Investments - MicroStrategy holds 252,220 BTC with a YTD BTC Yield of 17.8%[1][5] - Q3 2024 saw an 11% increase in bitcoin holdings and a reduction in annualized interest expense by $24 million[3] - The carrying value of digital assets (252,220 bitcoins) was $6.851 billion as of September 30, 2024[6] - MicroStrategy's Bitcoin holdings increased to 226,331 BTC as of June 30, 2024, with a carrying value of $5.69 billion[40] - The company purchased 25,889 BTC in Q3 2024 at an average price of $60,839 per Bitcoin, using $1.105 billion from stock sales and $458.2 million from convertible notes[40] - Total Bitcoin impairment losses reached $2.64 billion as of June 30, 2024[40] - The market value of Bitcoin holdings at the end of Q2 2024 was $14.02 billion, based on the ending price of $61,926.69 per Bitcoin[41] - MicroStrategy's Bitcoin purchases in 2024 totaled 63,070 BTC, acquired at an average price of $50,817 per Bitcoin[40] - The highest market price per Bitcoin during Q2 2024 was $72,777, resulting in a potential market value of $16.47 billion for the company's holdings[41] - The company's Bitcoin holdings have grown by 93,831 BTC (70.8%) since December 31, 2022[40] - MicroStrategy's Bitcoin holdings represent a total investment of $8.33 billion as of June 30, 2024[40] - The company's Bitcoin purchases in 2024 were funded primarily through convertible notes and stock sales, totaling over $3.17 billion[40] Financial Performance - Total revenues for Q3 2024 were $116.1 million, a 10.3% decrease year-over-year[11] - Gross profit for Q3 2024 was $81.7 million, representing a 70.4% gross margin[12] - Operating expenses increased by 301.6% year-over-year to $514.3 million, including $412.1 million in impairment losses on digital assets[13] - Net loss for Q3 2024 was $340.2 million, or $1.72 per share on a diluted basis[14] - Total revenues for the nine months ended September 30, 2024, were $342.759 million, compared to $371.777 million for the same period in 2023[34] - Digital asset impairment losses for the nine months ended September 30, 2024, were $783.807 million, compared to $76.613 million for the same period in 2023[34] - Net loss for the nine months ended September 30, 2024, was $495.851 million, compared to a net income of $339.995 million for the same period in 2023[34] - Net loss for Q3 2024 was $340.2 million, compared to a net loss of $143.4 million in Q3 2023[50] - Non-GAAP net loss for Q3 2024 was $307.8 million, compared to a non-GAAP net loss of $127.7 million in Q3 2023[50] - Total revenues for Q3 2024 decreased by 10.3% YoY to $116.1 million, with a constant currency decrease of 10.5%[53] - Subscription services revenue increased by 32.5% YoY to $27.8 million in Q3 2024, with a constant currency increase of 32.0%[53] - Product licenses revenue decreased by 53.9% YoY to $11.1 million in Q3 2024, with a constant currency decrease of 53.2%[53] - Total deferred revenue as of September 30, 2024, was $190.7 million, down from $236.7 million at the end of 2023[57] - Software business segment revenue for Q3 2024 was $116.1 million, down from $129.5 million in Q3 2023[58] - Gross profit for Q3 2024 was $81.7 million, compared to $102.8 million in Q3 2023[58] - Operating loss for Q3 2024 was $432.6 million, compared to an operating loss of $25.2 million in Q3 2023[58] - Share-based compensation expense for Q3 2024 was $19.4 million, up from $16.8 million in Q3 2023[50] - Total revenues for the nine months ended September 30, 2024, were $342.759 million, compared to $371.777 million for the same period in 2023[59] - Gross profit for the nine months ended September 30, 2024, was $247.460 million, down from $290.054 million in the same period in 2023[59] - Total operating expenses for the nine months ended September 30, 2024, were $1.084 billion, significantly higher than $362.316 million in the same period in 2023[59] - Loss from operations for the nine months ended September 30, 2024, was $836.558 million, compared to a loss of $72.262 million in the same period in 2023[59] Capital and Debt Management - The company announced a $42 billion capital plan, including $21 billion in equity and $21 billion in fixed-income securities[1][2] - Long-term debt increased to $4.212 billion as of September 30, 2024, from $2.182 billion as of December 31, 2023[37] - Net cash used in investing activities for the nine months ended September 30, 2024, was $4.011 billion, compared to $690.550 million for the same period in 2023[39] - Net cash provided by financing activities for the nine months ended September 30, 2024, was $4.046 billion, compared to $676.025 million for the same period in 2023[39] - Total liabilities increased to $4.570 billion as of September 30, 2024, from $2.598 billion as of December 31, 2023[37] - Total stockholders' equity increased to $3.774 billion as of September 30, 2024, from $2.165 billion as of December 31, 2023[38] - Cash, cash equivalents, and restricted cash decreased to $48.205 million as of September 30, 2024, from $48.673 million at the beginning of the period[39] Corporate Actions and Strategic Updates - The company revised its long-term BTC Yield target to 6% to 10% for 2025 through 2027[5] - MicroStrategy completed a 10-for-1 stock split on August 7, 2024[4] - MicroStrategy introduced a new Corporate & Other category in 2024, which includes impairment charges and other third-party costs related to its digital asset holdings[59] Non-GAAP Metrics - MicroStrategy's non-GAAP loss from operations for Q3 2024 was $413.2 million, compared to $8.4 million in Q3 2023[49] - Non-GAAP net loss for Q3 2024 was $307.8 million, compared to a non-GAAP net loss of $127.7 million in Q3 2023[50]