MicroStrategy, the world’s largest Bitcoin Treasury Company, has released its third quarter 2024 financial results, revealing a transformative period for the company. Their announcement highlights an ambitious $42 billion capital plan called the “21/21 Plan,” which aims to drive the “digital transformation of capital” through a capital raise of $21 billion in equity and $21 billion in fixed-income securities over the next three years.

Q3 2024 highlights include:

• MicroStrategy now holds 252,220 BTC, which had a market value of $16.007 billion as of September 30, 2024. The year-to-date BTC Yield, a key performance indicator, reached 17.8%.
• Total revenues were $116.1 million, a 10.3% decrease year over year, with subscription services revenues increasing by 32.5% year over year to $27.8 million. However, the company reported a net loss of $340.2 million, or $1.72 per share on a diluted basis.
• During Q3, MicroStrategy raised $2.1 billion through equity and debt offerings, including $1.1 billion from selling class A common stock and $1.010 billion from issuing 0.625% Convertible Senior Notes due 2028. The company continued its aggressive digital asset and bitcoin acquisition strategy, purchasing bitcoin using proceeds from equity and debt financings and excess cash from operations.

MicroStrategy’s CEO, Phong Le, emphasized the company’s focus on increasing shareholder value through the digital transformation of capital. The new 21/21 Plan underscores MicroStrategy’s commitment to its Bitcoin Treasury strategy, with plans to use the additional capital to acquire more Bitcoin as a treasury reserve asset.

The 21/21 Plan underscores MicroStrategy’s commitment to its long-term Bitcoin Treasury strategy and belief in Bitcoin as a store of value. Given the planned capital raise’s scale, the MicroStrategy 21/21 initiative could significantly impact the bitcoin market and MicroStrategy’s market position.

This is not investment advice.