- MicroStrategy’s quarterly sales of $116 million fell almost 5% short of the $122.660 million consensus estimate.
- The corporation reported a year-to-date BTC Yield of 17.8% to assess the success of their bitcoin strategy.
The biggest corporate bitcoin holder, business analytics firm MicroStrategy, released its third quarter financial results on Wednesday. Notable were fresh ambitions to raise $42 billion in cash and a 5.1% increase in its “BTC Yield.”
MicroStrategy (ticker MSTR) announced its “21/21 Plan,” which calls for $42 billion in capital over the following three years, evenly divided between $21 billion in fixed-income securities and $21 billion in equity. The goal of this program is to facilitate additional bitcoin purchases as part of its treasury reserve strategy.
According to Yahoo Finance data, MicroStrategy had a $50.1 billion total market capitalization at the time of publication.
MicroStrategy owned about 252,220 bitcoins with a market value of $16 billion as of September 30. In order to evaluate the effectiveness of its bitcoin strategy, the company announced a year-to-date BTC Yield of 17.8%.
MicroStrategy increased its bitcoin holdings by 11%, lowered yearly interest costs by $24 million, and funded $2.1 billion through debt and equity in the third quarter. Due to drops in product license and support fees, the company’s overall revenues of $116.1 million fell 10.3% from the previous year and fell around $8 million short of consensus projections.
The quarter’s operating expenses came to $514.3 million, mostly as a result of $412.1 million in losses from the impairment of digital assets, which resulted in a $432.6 million loss from operations.
With a more cautious stance in the face of market volatility, MicroStrategy revised its 2025–2027 BTC Yield target to a range of 6%–10%. In order to increase shareholder value and buy additional bitcoin, the business launched a new at-the-market equity offering of up to $21 billion.
For us, Q3 was yet another crucial quarter. Our 21/21 Plan lays out a clear course for future expansion, and we are still committed to using digital assets to increase shareholder value.
MSTR shares were down over 8% in after-hours trading after dropping 4% during the regular trading session. The stock has risen more than 250% so far this year.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
