MicroStrategy(MSTR)2024-10-30 20:02Bitcoin 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]