• MicroStrategy announced third quarter 2024 financial results and a $42 billion capital plan to acquire more bitcoin
• The company is launching a $21 billion at-the-market equity offering and aims to raise another $21 billion through fixed-income securities
• MicroStrategy revised its annual bitcoin acquisition target to 6-10% for 2025 through 2027
MicroStrategy Incorporated announced financial results for the third quarter of 2024 and a new strategic goal of raising $42 billion in capital over the next 3 years. To be exact, $21 billion in equity and $21 billion in fixed income. The capital will be used to acquire more bitcoin as a treasury reserve asset.
The following is a summary version of their latest press release and business statistics.
Q3 2024 Bitcoin Treasury Highlights
BTC Yield KPI
Year-to-date 2024, MicroStrategy’s BTC Yield is 17.8%. The company is revising its long-term target to achieve an annual BTC Yield of 6% to 10% between 2025 and 2027.
Digital Assets
As of September 30, 2024, the carrying value of MicroStrategy’s approximately 252,220 bitcoins was $18.51 billion. The original cost basis was $9.904 billion and the market value was $16.007 billion.
At-the-Market Equity Offering Program
During Q3 2024, MicroStrategy issued and sold 8,048,449 shares of its class A common stock for net proceeds of approximately $1.1 billion.
Issuance of 2028 Convertible Notes
In September 2024, MicroStrategy issued $1.01 billion aggregate principal amount of 0.625% Convertible Senior Notes due 2028.
Redemption of 2028 Senior Secured Notes
On September 26, 2024, MicroStrategy redeemed its 6.125% Senior Secured Notes due 2028 using proceeds from the new convertible notes issuance.
Q3 2024 Software Business Highlights
Revenues
Total Q3 2024 revenues were $116.1 million, a 10.3% decrease year-over-year.
Gross Profit
Gross profit was $81.7 million, representing a 70.4% gross margin compared to 79.4% in Q3 2023.
Other Q3 2024 Financial Highlights
Operating Expenses
Operating expenses were $514.3 million, a 301.6% increase year-over-year, primarily due to impairment losses on digital assets.
Net Loss
Net loss was $340.2 million or $1.72 per share, compared to a net loss of $143.4 million or $1.01 per share in Q3 2023.
Cash Position
As of September 30, 2024, MicroStrategy had $46.3 million of cash and cash equivalents, a decrease of $0.5 million compared to December 31, 2023.
Outlook
MicroStrategy announced a new strategic goal to raise $21 billion in equity and $21 billion in fixed income securities over the next 3 years to acquire more bitcoin. The company believes this strategy will allow it to achieve higher BTC Yield for shareholders.
