MicroStrategy Inc. Q3 Financial Results

TYSONS CORNER, Va. – MicroStrategy Inc. (NASDAQ:MSTR) reported third quarter financial results that fell short of analyst expectations, leading to a 3.9% decline in shares during after-hours trading on Wednesday.

The business intelligence software and bitcoin investment company recorded a loss of $1.56 per share on revenue of $116.1 million for the quarter ended September 30. Analysts had anticipated a smaller loss of $0.12 per share on revenue of $121.45 million.

Total revenue decreased 10.3% year-over-year, with revenue from product licenses and subscription services dropping 13.6% to $38.9 million. While subscription services revenue grew 32.5% to $27.8 million, this was offset by a 53.9% reduction in product license revenue to $11.1 million.

The company reported a net loss of $340.2 million for the quarter, compared to a loss of $143.4 million during the same period last year. The increase in losses was mainly due to $412.1 million in impairment charges on MicroStrategy's bitcoin holdings.

"Q3 2024 was another transformational quarter for MicroStrategy, as we raised $2.1 billion in equity and debt," said Andrew Kang, Chief Financial Officer. "Through our treasury strategy, we increased our bitcoin holdings by 11% in the quarter, raised our year-to-date BTC Yield to 17.8%, and reduced our total annualized interest expense by $24 million."

As of September 30, MicroStrategy held approximately 252,220 bitcoins, acquired for $9.9 billion at an average purchase price of $39,266 per bitcoin. The company announced plans to raise up to $42 billion in additional capital over the next three years to purchase more bitcoin.

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