MicroStrategy Bitcoin Holdings Double as Company Adds 25,889 BTC in Q3 2024

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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.

MicroStrategy Double It’s Bitcoin Holding

In 2020, MicroStrategy made headlines by becoming one of the first companies to adopt Bitcoin as its main treasury asset. This quarter, they added another 25,889 BTC, pushing their total holdings to 252,220 BTC—worth about $18 billion. The company acquired this latest batch at an average price of $60,839 per BTC, showing its strong commitment to a long-term Bitcoin strategy.

BTC Holdings as Shareholder Value

With each BTC bought at an average cost of $39,266, MicroStrategy’s holdings are currently in profit. The company’s careful buying has helped boost shareholder value as Bitcoin’s market price goes up.

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.

Future Plans: $42 Billion Funding

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.