On October 30, 2024, MicroStrategy's shares fell approximately 5.9% following a Q3 earnings report that revealed $116.1 million in revenue, a 10.3% decline year-over-year and 5.22% below analyst expectations. The stock closed at $247.31, dropping further to $242.99 in after-hours trading.
Despite this, MicroStrategy reported a 5.1% return on its Bitcoin holdings, which are valued at around $72,287, contributing to an overall gross profit of $81.7 million and a gross margin of 70.4%. CEO Michael Saylor highlighted that MicroStrategy has achieved a remarkable 1,989% growth since August 2020, outperforming competitors like Nvidia and Tesla.
However, analysts warn of potential volatility in MicroStrategy's stock price, particularly if Bitcoin experiences a downturn post the U.S. presidential election on November 5. Timothy Peterson, a network economist, indicated that MicroStrategy's stock could decline two to three times more sharply than Bitcoin due to its leveraged holdings.
In a strategic move, MicroStrategy plans to raise $42 billion over the next three years to acquire more Bitcoin, through a combination of $21 billion in equity and $21 billion in fixed-income securities.