Thu, Oct 31, 12:54 PM (63 days ago)
MicroStrategy Incorporated (MSTR) reported significant financial results for the third quarter of 2024, ending September 30, showing a decline in total revenue to $116.1 million from $129.5 million in the prior year. The decrease was primarily attributed to a 53.9% drop in product license revenues, while subscription services grew by 32.5%. Notably, the company recorded a staggering digital asset impairment loss of $412.1 million, reflecting ongoing volatility in Bitcoin values, which substantially impacted operating expenses, totaling $514.3 million. Consequently, the company reported a net loss of $340.2 million, a stark contrast to a loss of $143.4 million in Q3 2023. MicroStrategy's cash flow remains under pressure, with net cash used in operating activities at $35.7 million. The company continues to accumulate Bitcoin, holding approximately 252,220 BTC valued at $6.85 billion. The adoption of ASU 2023-08 in 2025 will require the recognition of unrealized gains or losses, potentially increasing financial volatility. Future operations may be affected by regulatory changes and market conditions, particularly concerning Bitcoin's performance and liquidity.