MicroStrategy, the business intelligence firm known for its substantial Bitcoin holdings, has unveiled an aggressive three-year plan to raise $42 billion for further Bitcoin acquisitions, according to statements made during their Q3 2024 earnings call.
The company’s new “21/21 Plan” aims to raise equal parts equity and fixed income securities – $21 billion each – to expand its Bitcoin treasury holdings. This announcement marks a significant escalation in MicroStrategy’s Bitcoin strategy, which has already established the company as a leading institutional Bitcoin holder.
CFO Andrew Kang reported a successful third quarter, highlighting the company’s raising of $2.1 billion through equity and debt offerings. The quarter saw an 11% increase in Bitcoin holdings, with a year-to-date BTC Yield of 17.8%. The company also achieved a $24 million reduction in annual interest expenses.
However, MicroStrategy’s core software business showed mixed results. While Subscription Services revenue grew by 32.5% year-over-year to $27.8 million, total revenues declined by 10.3% to $116.1 million. Product support revenues fell 8.7% to $61.0 million, and other services revenues decreased by 8.0% to $16.2 million.
The company’s gross profit for Q3 2024 was $81.7 million, representing a 70.4% gross margin, down from $102.8 million and a 79.4% margin in the same period last year.
