TYSONS CORNER, Va.--(BUSINESS WIRE)--MicroStrategy® (Nasdaq: MSTR), the largest independent publicly-traded business intelligence company, today announced it will report its financial results for the fourth quarter of 2023 after the U.S. financial markets close on Tuesday, February 6, 2024 and will host a live Video Webinar at 5:00 p.m. Eastern Time to discuss the results. A live Video Webinar of the event can be accessed under the “Events and Presentations” section of MicroStrategy’s investor relations we ...

MicroStrategy Inc. (NASDAQ: MSTR) suffered a tough hit following the Bitcoin spot ETF approval on January 10. Deemed as an indirect exposure to Bitcoin (BTC), Michael Saylor’s company now faces powerful Wall Street competitors.In a sequence of events, the SEC finally approved 11 ETFs for the leading cryptocurrency. In response, BTC traded as high as $48,965 a day after, but MSTR did not follow.Notably, MicroStrategy stock has directly correlated to Bitcoin’s price since Michael Saylor started accumulating B ...

Shares of MicroStrategy (NASDAQ:MSTR) are down by about 5% as several spot Bitcoin (BTC-USD) exchange-traded funds (ETFs) begin their first day of trading following U.S. SEC approval. These include BlackRock’s (NYSE:BLK) iShares Bitcoin Trust (NASDAQ:IBIT) and the ARK 21Shares Bitcoin ETF (NYSE:ARKB). However, so far in 2024, MSTR stock is now down by 22%.The emergence of Bitcoin ETFs presents a major threat to MicroStrategy, as many people have invested in the Bitcoin-centric company as a proxy for the act ...

MicroStrategy Inc. (NASDAQ: MSTR) has been considered an indirect Bitcoin spot ETF due to its treasury exposure to Bitcoin (BTC). The stock market now wonders if a Bitcoin ETF approval could negatively impact MSTR stock with capital outflow.By December 27, 2023, MicroStrategy held 189,150 BTC in its treasury – worth approximately $8.5 billion. Interestingly, MicroStrategy Bitcoin holdings already surpass MSTR’s $7.9 billion market cap on January 10.Notably, MSTR shares slightly outperformed BTC in 2023 whil ...

spawns As we end 2023, the original alt-coin, Bitcoin (BTC-USD), is flying once again. That has taken stocks tied to Bitcoin's fortune - miners and those that hold significant amounts of Bitcoin - higher with it. One such stock that is perhaps the most tied to Bitcoin is software company MicroStrategy (NASDAQ:MSTR), which owns something like nearly $6 billion worth of Bitcoin. That means the stock's fortunes are very much tied to the price action of Bitcoin, and MicroStrategy is soaring as a result. The las ...

Shares of MicroStrategy (MSTR 10.78%) jumped on Wednesday after the company announced it had spent a whopping $615.7 million buying Bitcoin (BTC 2.77%). As of 2:15 p.m. ET, MicroStrategy stock was up about 9%.The Bitcoin strategyMicroStrategy first started buying Bitcoin as its capital-allocation strategy in 2020. Since then, the company used virtually all of the money it had and took on debt to buy as much Bitcoin as possible. That's why its greater-than $600 million purchase is so surprising -- it only ha ...

MicroStrategy (NASDAQ: MSTR) has acquired an additional 14,620 bitcoins for $615.7 million, the company’s founder and Chairman Michael Saylor has announced. The new purchase was scooped at the average price of $42,110.The news has coincided with yet another uptick in the price of its stock MSTR, which rose slightly premarket before quickly jumping more than 3% just after markets opened on Wednesday. MSTR stock surges as MicroStrategy buys more BitcoinCopy link to sectionAs of December 26, 2023, MicroStrateg ...

In this articleMSTRMichael Saylor, executive chairman at MicroStrategy.Valerie Plesch | Bloomberg | Getty ImagesMicroStrategy was founded almost 35 years ago and existed for most of its history as a little-known software company focused on business intelligence.But in 2023, the stock has soared 337%, making it one of the biggest gainers in the U.S. among companies valued at $5 billion or more, topping Nvidia's 234% rally and Meta's 194% surge.Unlike its tech peers, which rely on revenue growth and market sh ...

Bitcoin Holdings and Strategy - As of September 30, 2023, MicroStrategy held approximately 158,245 bitcoins, with a market value of $425.2 million based on a bitcoin price of $27,030.47[121] - The total original cost basis of bitcoins held by MicroStrategy as of September 30, 2023, was approximately $4.68 billion, with impairment losses totaling $2.23 billion[122] - In Q3 2023, MicroStrategy purchased bitcoins using $147.3 million from the proceeds of its class A common stock sales and excess cash[123] - The average purchase price per bitcoin in Q3 2023 was approximately $27,348, with a total of 5,912 bitcoins acquired[122] - MicroStrategy's bitcoin acquisition strategy aims to accumulate bitcoin as long-term holdings, with no specific target for the total amount[119] - The company believes bitcoin serves as a store of value and a hedge against inflation, enhancing brand awareness through its related activities[120] - The market value of bitcoins held by MicroStrategy at the end of Q3 2023, using the ending market price, was approximately $4.28 billion[124] - The company held approximately 158,400 bitcoins as of October 31, 2023, with an aggregate purchase price of $4.686 billion, averaging $29,586 per bitcoin, while the market price was $34,555.58[131] Financial Performance - Total revenues for Q3 2023 reached $129.462 million, a slight increase from $125.360 million in Q3 2022, while total revenues for the nine months ended September 30, 2023, were $371.777 million, compared to $366.710 million in the same period of 2022[144] - Operating expenses for Q3 2023 totaled $128.048 million, significantly higher than $93.917 million in Q3 2022, driven by increased digital asset impairment losses[144] - The gross profit for Q3 2023 was $102.801 million, compared to $99.975 million in Q3 2022, indicating a stable gross margin despite rising operating expenses[144] - Digital asset impairment losses for Q3 2023 were $33.6 million, accounting for 26.2% of operating expenses, compared to $0.7 million (0.8%) in Q3 2022[130] - Non-GAAP loss from operations for the nine months ended September 30, 2023, was $(22,407,000), compared to a loss of $(1,035,438,000) in the same period of 2022[207] - Non-GAAP net loss for Q3 2023 was $127,666,000 compared to a loss of $10,831,000 in Q3 2022, while for the nine months ended September 30, 2023, it was $354,301,000 compared to a loss of $1,177,237,000 in the same period of 2022[208] Revenue Breakdown - Total product licenses and subscription services revenues increased by 16.3% to $45,019,000 for the three months ended September 30, 2023, compared to $38,700,000 in the same period of 2022[151] - Domestic product licenses revenues decreased by 33.4% to $10,338,000 for the three months ended September 30, 2023, compared to $15,526,000 in the same period of 2022[152] - International product licenses revenues increased by 102.8% to $13,707,000 for the three months ended September 30, 2023, compared to $6,760,000 in the same period of 2022[152] - Subscription services revenues increased by 27.8% to $20,974,000 for the three months ended September 30, 2023, compared to $16,414,000 in the same period of 2022[151] - Consulting revenues decreased by 14.7% to $16,676,000 for the three months ended September 30, 2023, compared to $19,545,000 in the same period of 2022[158] - Education revenues decreased by 17.9% to $907,000 for the three months ended September 30, 2023, compared to $1,105,000 in the same period of 2022[159] - The company reported a non-GAAP constant currency revenue growth of 25.3% for subscription services in Q3 2023[210] Expenses and Cost Management - Research and development expenses decreased by 2.7% to $29,660,000 for the three months ended September 30, 2023, compared to $30,498,000 in the same period of 2022[165] - General and administrative expenses increased by 7.1% to $29,223,000 for the three months ended September 30, 2023, compared to $27,283,000 in the same period of 2022[168] - Total cost of revenues for Q3 2023 was $26,661,000, a 5.0% increase from $25,385,000 in the same period of 2022[160] - The cost of product support revenues for Q3 2023 was $5,531,000, reflecting a 5.9% increase year-over-year[210] Cash Flow and Financing Activities - Net cash provided by operating activities decreased by 46.2% to $11,528,000 for the nine months ended September 30, 2023, compared to $21,409,000 in the same period of 2022[188] - Net cash used in investing activities increased by 196.0% to $(690,550,000) for the nine months ended September 30, 2023, primarily due to a $456.5 million increase in bitcoin purchases[190] - Net cash provided by financing activities increased by 207.2% to $676,025,000 for the nine months ended September 30, 2023, driven by $819.7 million in net proceeds from the sale of class A common stock[191] - The company issued and sold 1,348,855 shares of class A common stock under the 2022 Sales Agreement for net proceeds of approximately $339.0 million during the nine months ended September 30, 2023[201] Market and Currency Exposure - The company is exposed to market price changes in bitcoin and foreign currency fluctuations, which could materially impact earnings[214] - A 10% adverse change in foreign currency exchange rates would have decreased reported cash and cash equivalents by 4.2% as of September 30, 2023[219] - If average exchange rates had changed unfavorably by 10% during the nine months ended September 30, 2023, revenues would have decreased by 3.6%[219] - The company attempts to minimize foreign currency risk by converting excess foreign currency to U.S. dollar-denominated cash and investment accounts[218] Future Outlook and Strategic Initiatives - The company is transitioning to a cloud-native model, enhancing go-to-market strategies to acquire new customers and drive revenue growth[134] - The company expects subscription services revenues to continue to grow in future periods as it promotes its cloud offering to new and existing customers[156] - Product licenses revenues may experience declines in future periods as the company continues to promote its cloud offering[152]

Bitcoin Holdings and Strategy - As of June 30, 2023, the company held approximately 152,333 bitcoins, with a market value of $4.63 billion based on a bitcoin price of $30,361.51[120] - The company has accumulated a total of $4.52 billion in original cost basis for its bitcoin holdings, with impairment losses totaling $2.20 billion[121] - The average purchase price per bitcoin for the holdings as of June 30, 2023, was approximately $29,668[121] - The company plans to continue acquiring bitcoin using excess cash and proceeds from capital raising transactions, with no specific target for total bitcoin holdings[118] - The company views bitcoin as a long-term store of value and a hedge against inflation due to its limited supply[119] - The company’s treasury reserve policy includes cash assets exceeding working capital requirements and bitcoin as the primary treasury reserve asset[120] - The company held approximately 152,333 bitcoins as of June 30, 2023, with 137,069 being unencumbered[183] - As of June 30, 2023, the company held approximately 152,333 bitcoins with a carrying value of $2.323 billion, reflecting cumulative impairments of $2.196 billion[209] - For the six months ended June 30, 2023, the company incurred an impairment loss of $43.1 million on its bitcoin holdings[209] Financial Performance - Total revenues for Q2 2023 were $120.4 million, slightly down from $122.1 million in Q2 2022, while total revenues for the first half of 2023 were $242.3 million, compared to $241.4 million in the same period of 2022[140] - The gross profit for Q2 2023 was $93.3 million, compared to $96.9 million in Q2 2022, indicating a decline in profitability[140] - Operating expenses for Q2 2023 totaled $120 million, a significant reduction from $1.015 billion in Q2 2022, primarily due to lower digital asset impairment losses[140] - Non-GAAP net income for Q2 2023 was $36,929,000, compared to a loss of $1,048,734,000 in Q2 2022[201] - Non-GAAP diluted earnings per share for Q2 2023 was $2.35, a significant improvement from a loss of $92.81 per share in Q2 2022[201] - Non-GAAP net income for the first half of 2023 was $481,967,000, compared to a loss of $1,166,406,000 in the first half of 2022[201] Revenue Breakdown - Total product licenses and subscription services revenues increased by 3.7% to $35.4 million for the three months ended June 30, 2023, and by 12.8% to $71.6 million for the six months ended June 30, 2023[145] - Domestic product licenses revenues decreased by 31.3% to $10.4 million for the three months ended June 30, 2023, and by 23.8% to $19.1 million for the six months ended June 30, 2023[146] - International product licenses revenues increased by 2.9% to $5.1 million for the three months ended June 30, 2023, and by 19.2% to $13.9 million for the six months ended June 30, 2023[146] - Subscription services revenues increased by 41.8% to $19.9 million for the three months ended June 30, 2023, and by 44.0% to $38.7 million for the six months ended June 30, 2023[145] - Consulting revenues decreased by 11.3% to $18.0 million for the three months ended June 30, 2023, and by 10.5% to $37.3 million for the six months ended June 30, 2023[152] - Education revenues decreased by 17.1% to $0.9 million for the three months ended June 30, 2023, and by 26.4% to $1.8 million for the six months ended June 30, 2023[152] Cash Flow and Capital Raising - The company has raised cash through various capital raising transactions, including $336.9 million in Q2 2023 from the sale of class A common stock[123] - Net cash provided by operating activities decreased by 17.2% to $18.925 million for the six months ended June 30, 2023, compared to $22.863 million in the same period of 2022[184] - Net cash used in investing activities increased by 132.3% to $(527.416) million for the six months ended June 30, 2023, primarily due to a $300.8 million increase in bitcoin purchases[186] - Net cash provided by financing activities increased by 140.7% to $525.911 million for the six months ended June 30, 2023, driven by $672.4 million in net proceeds from the sale of class A common stock[187] - The company issued and sold 1,348,855 shares of class A common stock under the 2022 Sales Agreement for net proceeds of approximately $339.0 million during the six months ended June 30, 2023[195] Expenses and Cost Management - Research and development expenses decreased by 7.7% to $29,354,000 for the three months ended June 30, 2023, compared to $31,790,000 in the same period of 2022[162] - Sales and marketing expenses increased by 2.2% to $36,862,000 for the three months ended June 30, 2023, compared to $37,660,000 in the same period of 2022[160] - General and administrative expenses increased by 1.2% to $28,830,000 for the three months ended June 30, 2023, compared to $28,502,000 in the same period of 2022[164] - Share-based compensation expense for Q2 2023 was $15.5 million, showing a slight increase from $15.3 million in Q2 2022, attributed to the expansion of the equity award program[142] - The company expects share-based compensation expense to continue as a significant recurring expense over the coming years[199] Market Risks and Currency Exposure - The company continues to face significant volatility and risks associated with the bitcoin market, which may impact its financial results[130] - The company is exposed to market risks related to fluctuations in bitcoin prices and foreign currency exchange rates[208] - A 10% adverse change in foreign currency exchange rates would have decreased reported cash and cash equivalents by 4.6% as of June 30, 2023[213] - If average exchange rates had changed unfavorably by 10%, revenues for the six months ended June 30, 2023 would have decreased by 3.7%[213] - The company attempts to minimize foreign currency risk by converting excess foreign currency to U.S. dollar-denominated cash and investment accounts[212]