Bitcoin Holdings and Acquisitions - Strategy holds 471,107 BTC, with a carrying value of $23.909 billion as of December 31, 2024[1][10] - In Q4 2024, the company acquired 218,887 bitcoins for $20.5 billion, marking the largest quarterly increase in bitcoin holdings[3] - The company purchased $15.09 billion in Bitcoin during the fourth quarter of 2024, utilizing proceeds from its stock offerings[45] - As of December 31, 2024, MicroStrategy held 447,470 bitcoins, with a market value of approximately $26,339,829,000 using the lowest market price during the quarter[47] - The total number of bitcoins held by MicroStrategy increased from 132,500 at the end of December 31, 2022, to 447,470 by December 31, 2024[47] Financial Performance - Total revenues for Q4 2024 were $120.7 million, a 3.0% decrease year-over-year, while subscription services revenues increased by 48.4% to $31.9 million[10] - The company reported a net loss of $1.17 billion for the twelve months ended December 31, 2024, compared to a net income of $429.1 million for the same period in 2023[36] - Basic loss per share for the twelve months ended December 31, 2024, was $(6.06), compared to earnings of $3.14 per share in 2023[36] - The company reported a total product licenses revenue of $48,567 thousand for the year ended December 31, 2024, down 35.5% from $75,351 thousand in 2023[62] - The income tax benefit for the year ended December 31, 2024, was $767,685 thousand, compared to $553,646 thousand in 2023, reflecting improved tax efficiency[62] Operating Expenses and Losses - Operating expenses surged to $1.103 billion, a 693.2% increase year-over-year, primarily due to impairment losses on digital assets of $1.006 billion[9] - The company's total operating expenses for the twelve months ended December 31, 2024, were $2.19 billion, compared to $501.4 million in 2023[36] - Digital asset impairment losses for the twelve months ended December 31, 2024, were $1.79 billion, significantly higher than $115.9 million in 2023[36] - Total expenses for the year ended December 31, 2024, were $2,316,434 thousand, compared to $611,308 thousand in 2023, indicating a significant increase in costs[62] - The loss from operations for the Software Business in 2024 was $55,407 thousand, compared to a gain of $3,558 thousand in 2023[62] Stock and Equity - The company issued 42,308,443 shares of class A common stock for net proceeds of approximately $15.1 billion during Q4 2024[10] - Strategy completed a 10-for-1 stock split on August 7, 2024, retroactively adjusting prior period share information[4] - The company has not paid any dividends on its class A common stock historically and does not intend to do so in the future[30] - The company reported a total stockholders' equity of $18.23 billion in 2024, up from $2.16 billion in 2023, reflecting an increase of approximately 743%[39] Cash Flow and Assets - Cash and cash equivalents decreased to $38.1 million as of December 31, 2024, down from $46.8 million a year earlier[17] - Net cash used in operating activities was $(53.03) million in 2024, a decline from $12.71 million provided in 2023[41] - Net cash used in investing activities escalated to $(22.09) billion in 2024 compared to $(1.91) billion in 2023[41] - Total assets increased significantly to $25.84 billion in 2024 from $4.76 billion in 2023, representing a growth of approximately 442%[39] - Digital assets surged to $23.91 billion in 2024, up from $3.63 billion in 2023, marking an increase of about 558%[39] Market Conditions and Risks - The company revised its annual BTC Yield target to a minimum of 15% for 2025, down from 74.3% achieved in FY 2024[6][7] - Strategy aims for an annual BTC $ Gain target of $10 billion for 2025, with a BTC Gain of 140,538 for FY 2024[6][7] - The company’s ability to achieve positive BTC Yield, BTC Gain, or BTC $ Gain may depend on various factors, including the price of bitcoin and the availability of financing[31] - Forward-looking statements indicate potential risks including fluctuations in bitcoin prices and changes in market conditions that could materially affect future results[33] Market Prices - The average purchase price per Bitcoin increased to $62,503 in 2024, compared to $31,168 in 2023[43] - The market price per bitcoin at the end of the quarter on December 31, 2024, was $58,863.90[47] - The highest market price per bitcoin during the quarter ended December 31, 2024, was $108,388.88, resulting in a market value of $48,500,772,000[47] - The market value of bitcoins held at the end of the quarter using the ending market price was $41,789,317,000 as of December 31, 2024[47]
MicroStrategy Inc Series A Pfd(STRK) - 2024 Q4 - Annual Results