MicroStrategy's Q3 Earnings and Bitcoin Strategy
MicroStrategy's stock price is experiencing a decline on Friday following the release of their third-quarter earnings report. The company reported a loss of $1.56 per share, falling short of the analyst consensus estimate of 14 cents. Additionally, quarterly sales of $116.071 million missed the analyst estimate of $122.66 million by 5.37%. This represents a 10.34% decrease compared to the same period last year.
Despite the disappointing earnings report, MicroStrategy remains committed to its Bitcoin-focused treasury strategy. The company recently increased its Bitcoin holdings to 252,220 BTC, valued at approximately $18.23 billion. CEO Michael Saylor emphasized MicroStrategy's role as a "public equity play on Bitcoin maximalism," reiterating the company's plan to raise an additional $42 billion in equity and debt over the next three years to finance further Bitcoin acquisitions.
MicroStrategy's Bitcoin strategy has yielded a 17.8% return, outperforming traditional benchmarks like the S&P 500. The company reports an 825% return on Bitcoin investments since pivoting its treasury in 2020. However, this strategy has also contributed to a widened net loss of $340 million, compared to $143.4 million in the same period last year.
Despite the recent stock price decline, several analysts maintain "Buy" ratings on MicroStrategy, with price targets raised to $300. MicroStrategy's move has also inspired other companies like Cathedra Bitcoin and Metaplanet to adopt similar strategies, highlighting its influence in corporate digital asset adoption.
As of this writing, MicroStrategy shares are down 6.93% at $235.38.