Bitcoin Holdings and Market Value - MicroStrategy holds approximately 252,220 BTC with a carrying value of $6.851 billion and a market value of $16.007 billion as of September 30, 2024[7]. - The total market value of bitcoin held by MicroStrategy is expected to reach approximately $6.851 billion by September 30, 2024, based on the current number of bitcoins held[42]. - The average market price per bitcoin at the end of the third quarter of 2024 is projected to be $39,266[42]. - As of September 30, 2023, MicroStrategy's total digital asset purchases reached approximately $1.214 billion, increasing the total carrying value of digital assets to $2.451 billion[35]. - The total number of bitcoins held by MicroStrategy increased to 158,245 by September 30, 2023, with an average purchase price per bitcoin of $29,582[35]. Financial Performance - Total revenues for Q3 2024 were $116.1 million, representing a 10.3% decrease year-over-year, while subscription services revenues increased by 32.5% to $27.8 million[13]. - Total revenues for Q3 2024 were $116.071 million, a decrease of 10.3% compared to $129.462 million in Q3 2023[29]. - Subscription services revenue increased by 32.5% year-over-year, reaching $27.800 million in Q3 2024, compared to $20.974 million in Q3 2023[29]. - For the nine months ended September 30, 2024, total revenues were $342,759 thousand, a decrease of 7.8% from $371,777 thousand in the same period of 2023[59]. - The gross profit for the nine months ended September 30, 2024, was $247,460 thousand, compared to $290,054 thousand for the same period in 2023[59]. Losses and Expenses - The company reported a net loss of $340.2 million, or $1.72 per share on a diluted basis, compared to a net loss of $143.4 million, or $1.01 per share, in Q3 2023[13]. - Net loss for Q3 2024 was $340.174 million, compared to a net loss of $143.441 million in Q3 2023[29]. - The company reported a basic loss per share of $1.72 for Q3 2024, compared to a loss of $1.01 per share in Q3 2023[29]. - Operating expenses surged to $514.3 million, a 301.6% increase year-over-year, primarily due to impairment losses on digital assets totaling $412.1 million[13]. - Total operating expenses for the three months ended September 30, 2024, were $514,304 thousand, compared to $128,048 thousand for the same period in 2023[59]. - MicroStrategy reported a non-GAAP loss from operations of $413.2 million for the third quarter of 2024, compared to a loss of $8.4 million in the same quarter of 2023[47]. - Non-GAAP net loss for the three months ended September 30, 2024, was $307,796 thousand, compared to a non-GAAP net loss of $127,666 thousand for the same period in 2023[49]. Strategic Goals and Financing - MicroStrategy announced a strategic goal to raise $42 billion over the next three years, consisting of $21 billion in equity and $21 billion in fixed income securities[2]. - A new At-the-Market Equity Offering Program was announced, allowing the company to issue shares with an aggregate offering price of up to $21 billion[7]. - The company generated $4.046 billion in net cash from financing activities during the nine months ended September 30, 2024[33]. - Long-term debt increased to $4.212 billion as of September 30, 2024, compared to $2.182 billion at the end of 2023[31]. Digital Asset Impairment - Digital asset impairment losses for Q3 2024 were $412.084 million, significantly higher than $33.559 million in Q3 2023[29]. - Digital asset impairment losses for the third quarter of 2023 amounted to $39.2 million, contributing to a total impairment of $2.229 billion as of September 30, 2023[35]. - MicroStrategy has introduced a Corporate & Other category in 2024, which includes impairment charges and costs associated with its digital asset holdings[59]. Stock and Equity Changes - The company completed a 10-for-1 stock split on August 7, 2024, with all prior share information adjusted accordingly[4]. - Total stockholders' equity increased to $3.774 billion as of September 30, 2024, from $2.165 billion at the end of 2023[31]. - Deferred revenue as of September 30, 2024, totaled $190,746 thousand, down from $236,686 thousand as of December 31, 2023[57].
MicroStrategy Inc Series A Pfd(STRK) - 2024 Q3 - Quarterly Results