MicroStrategy Incorporated (Nasdaq: MSTR) has recently announced its financial results for the first quarter of 2024, revealing significant developments in its bitcoin holdings and business operations.
MicroStrategy, known as the largest corporate holder of bitcoin and a leading publicly-traded business intelligence company, disclosed that it now holds a substantial 214,400 bitcoins with an average purchase price of $35,180 per bitcoin. The company emphasized its commitment to the ongoing development of the bitcoin network through various financial market activities, advocacy efforts, and technological innovations.
Phong Le, the President and Chief Executive Officer of MicroStrategy, expressed satisfaction with the company’s performance in the first quarter, highlighting the growth in subscription services revenues and billings. He underscored the successful transition of the software business to a cloud-native platform and the positive reception of the company’s cloud platform on a global scale.
During the first quarter, MicroStrategy raised over $1.5 billion through capital market strategies, including two successful convertible debt offerings. The company also expanded its bitcoin holdings by acquiring 25,250 additional bitcoins, marking the 14th consecutive quarter of augmenting its bitcoin balance sheet.
Andrew Kang, the Chief Financial Officer of MicroStrategy, pointed out the unique value creation opportunity for shareholders stemming from the company’s operational structure, bitcoin strategy, and focus on technology innovation. Kang attributed the significant appreciation in the price of bitcoin year-to-date to factors such as increased institutional demand and enhanced regulatory clarity following the approval of spot bitcoin exchange-traded products.
In terms of financial performance, MicroStrategy reported total revenues of $115.2 million for the first quarter of 2024, reflecting a 5.5% decrease compared to the same period in 2023. Product licenses and subscription services revenues amounted to $35.9 million, showing a slight decline from the previous year, while product support revenues stood at $62.7 million.
The company’s continuous focus on bitcoin holdings and strategic financial decisions underscores its position as a key player in the evolving landscape of digital assets and business intelligence. MicroStrategy’s innovative approach and steadfast commitment to technological advancements continue to drive its growth and value proposition in the market.
