MicroStrategy, the biggest company holder of Bitcoin, recently shared its Q3 2024 financial results, showing its commitment to Bitcoin and digital growth as the main strategies to increase shareholder value.
Here’s a breakdown of MicroStrategy’s earnings and plans for future growth. Dive right in.
MicroStrategy & Bitcoin: A Love Story!
In 2020, MicroStrategy made headlines as one of the first major companies to adopt Bitcoin as its main treasury asset. This quarter, it increased its holdings by adding 25,889 BTC, bringing its total to 252,220 BTC, valued at around $18 billion. The company acquired this latest batch at an average price of $60,839 per BTC, underscoring its commitment to a long-term Bitcoin strategy.
With an average acquisition cost of $39,266 per BTC, MicroStrategy’s Bitcoin position is currently profitable. Its strategic buying approach has boosted shareholder value as Bitcoin’s market price has risen, showcasing the company’s effective timing and financial management.
Balancing Debt and Capital Flexibility
MicroStrategy uses a mix of debt and equity to balance its finances. With $4.3 billion in convertible debt and $1.1 billion raised through new shares, the company has managed to support its Bitcoin growth while keeping $836 million in cash for plans.
Big Funding Goals for 2025-2027
MicroStrategy has set large funding goals for the coming years, aiming to raise more money through shares and fixed-income products. This flexible approach lets the company adjust as needed, setting an example for others looking to add Bitcoin to their finances.
Growing Revenue from Software
MicroStrategy’s software business is also performing well, with subscription billings up 93% year-over-year, reaching $32.4 million. This growth shows the company’s ability to build both a solid software business and a BTC treasury, offering a diversified model that could inspire other corporations.
Reducing Risk Smartly
MicroStrategy paid off $500 million in secured notes, lowering its debts and cutting fixed-interest costs by 40%. These moves add security to its BTC holdings, showing how the company manages risk while growing.
Setting BTC Yield Goals
MicroStrategy has set a yearly BTC yield target of 6-10%, using a BTC/share ratio as a key measure. This goal reflects their focus on getting the most Bitcoin value per share, which could interest other businesses looking at Bitcoin.
Outperforming BTC and Stock Indices
Since adopting its Bitcoin-focused approach, MicroStrategy’s stock has outperformed both Bitcoin and major stock indexes, showing the positive effects of well-managed growth.
CEO’s Vision: A $42 Billion Growth Plan
Recently, MicroStrategy’s CEO, Michael Saylor, announced a bold $42 billion plan, split between an equity offering and fixed-income products. This plan highlights their vision for bigger moves ahead.
MicroStrategy’s Q3 2024 report shows its ongoing leadership in corporate BTC adoption, merging Bitcoin strategy with business growth to increase shareholder value.
As Bitcoin’s biggest corporate believer, MicroStrategy is showing the world that bold bets on digital assets can pay off in both growth and vision.
