• Bitcoin Holdings: 252,220 Bitcoins with a market value of $18 billion.

• Bitcoin Acquisition: Acquired 25,889 Bitcoins for $1.6 billion at an average price of $60,839.

• Equity and Debt Financing: Raised $1.1 billion through ATM equity offering and $1.01 billion through convertible notes.

• Software Business Revenue: $116 million, down 10% year-over-year.

• Non-GAAP Subscription Billings: Grew 93% year-over-year to $32.4 million.

• Subscription Services Revenue: Increased 32% year-over-year, now 24% of total revenues.

• Cost of Revenues: $34 million, up 29% due to higher cloud hosting costs.

• Operating Expenses: $100 million, up 7% year-over-year.

• Severance Costs: $14 million, resulting in $30 million in expected savings next year.

• Bitcoin Impairment: $414 million in Q3.

• Convertible Debt: $4.3 billion outstanding with a 0.8% blended interest rate.

• Market Value of Bitcoin Holdings: $16 billion with an aggregate cost of $9.9 billion.

• BT C Yield: 5.1% in Q3, with a year-to-date yield of 17.8%.

• Warning! GuruFocus has detected 6 Warning Signs with MSTR.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MicroStrategy Inc (NASDAQ:MSTR) remains the largest corporate holder of Bitcoin, with 252,220 Bitcoins valued at $18 billion.

• The company successfully raised $1.1 billion through an ATM equity offering and $1.01 billion through convertible notes, enhancing its Bitcoin acquisition strategy.

• MicroStrategy Inc (NASDAQ:MSTR) reported a 93% year-over-year growth in non-GAAP subscription billings, driven by cloud migrations and new customer wins.

• The company has a strategic plan to raise $42 billion over the next three years to acquire more Bitcoin, showcasing its commitment to its Bitcoin Treasury strategy.

• MicroStrategy Inc (NASDAQ:MSTR) has demonstrated strong performance, outperforming the S&P 500 and major tech stocks since adopting its Bitcoin strategy in 2020.

Negative Points

• MicroStrategy Inc (NASDAQ:MSTR) reported a 10% year-over-year decline in software business revenues, reflecting the ongoing transition from on-premise to cloud.

• The company incurred $14 million in severance costs related to workforce optimization, impacting short-term financials.

• There is a potential risk associated with the ambitious $42 billion capital raising plan, which could lead to dilution of existing shareholders.

• MicroStrategy Inc (NASDAQ:MSTR) faces high volatility in its stock, which may concern risk-averse investors.

• The company's heavy reliance on Bitcoin exposes it to significant market risk and volatility, which could impact financial stability.