The post MicroStrategy Bitcoin Holdings Double as Company Adds 25,889 BTC in Q3 2024 appeared first on Coinpedia Fintech News
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.
3/
Leveraging Debt, Smartly
With $4.3B in convertible debt and $1.1B in new equity, MicroStrategy’s debt profile is a masterclass in balancing capital while increasing BTC holdings. $836M in cash remains on hand. pic.twitter.com/UHUadhBAU5
— Allen (@AllenHODL) October 30, 2024
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 announces $42 billion capital plan including $21 billion ATM equity offering and a target of raising $21 billion in fixed-income securities. Join us at 5pm ET as we discuss our quarterly results and #Bitcoin Treasury Company plans. $MSTR https://t.co/eXYELbN1Dm
— Michael Saylor
(@saylor) October 30, 2024
MicroStrategy’s Q3 2024 report shows its ongoing leadership in corporate BTC adoption, merging Bitcoin strategy with business growth to increase shareholder value.
