- MicroStrategy acquired an additional 25,250 bitcoins in Q1 2024, bringing its total bitcoin holdings to 214,400 BTC at an average cost of $35,180 per BTC
- Total revenues for Q1 2024 were $1.15 billion, down 5% year-over-year, while subscription services revenues grew 22% year-over-year to $230 million
- MicroStrategy issued $14 billion in convertible debt in March 2024 to raise funds for additional bitcoin purchases
MicroStrategy Incorporated, the largest corporate holder of bitcoin and the largest independent publicly-traded business intelligence company, announced financial results for the first quarter of 2024 on April 29, 2024. The company now holds 214,400 bitcoins acquired at an average price of $35,180 per bitcoin.
Q1 2024 Financial Highlights
Revenues
- Total revenues for Q1 2024 were $1.152 billion, a 5.5% decrease year-over-year.
- Product licenses and subscription services revenues were $359 million, down 0.9%.
- Product support revenues were $627 million, down 4.3%.
- Other services revenues were $167 million, down 17.6%.
Gross Profit
- Gross profit for Q1 2024 was $852 million, representing a 74.0% gross margin. This is down from 77.1% in Q1 2023.
Operating Expenses
- Operating expenses for Q1 2024 were $2.889 billion, up 152.8% from Q1 2023.
- This includes impairment losses on digital assets of $1.916 billion in Q1 2024 compared to $189 million in Q1 2023.
Loss from Operations and Net Loss
- Loss from operations for Q1 2024 was $2.037 billion compared to a loss of $203 million in Q1 2023.
- Net loss for Q1 2024 was $531 million, or $3.09 per share. This compares to net income of $4.612 million, or $31.79 per share, in Q1 2023.
Cash and Cash Equivalents
- As of March 31, 2024, MicroStrategy had $813 million in cash and cash equivalents, up from $468 million at the end of 2023.
Digital Assets
- As of March 31, 2024, the carrying value of MicroStrategy’s bitcoin holdings was $5.074 billion, reflecting cumulative impairment losses of $2.461 billion.
- The company held approximately 214,278 bitcoins at an average carrying value per bitcoin of $23,680.
Convertible Notes Issuances
- In March 2024, MicroStrategy issued $800 million of 0.625% Convertible Senior Notes due 2030.
- The company also issued $603.8 million of 0.875% Convertible Senior Notes due 2031.
Conclusion
MicroStrategy continues to execute on its bitcoin strategy, acquiring over 25,000 additional bitcoins in Q1 2024. The company believes its bitcoin holdings combined with its enterprise analytics software business provides a unique opportunity for value creation.
