Bitcoin can’t save MicroStrategy

MicroStrategy’s shares plummeted about 6% after the company’s third-quarter earnings missed consensus projections by a small margin, analyst cautioned that the stock may face more challenges following the US election.

MicroStrategy reported $116.1 million in revenue on October 30, 10.3% lower than Q3 2023 and about 5.22% less than analysts had predicted. Along with an overall gross profit of $81.7 million, or a 70.4% gross margin, the company also reported a 5.1% return on its Bitcoin holdings for the quarter.

This was in line with the company’s rebranding this year as a “Bitcoin development company.”

Saylor compared MicroStrategy’s performance to Nvidia and Tesla’s growth. Since August 2020, MicroStrategy has achieved a noteworthy 1,989% increase, surpassing Nvidia’s 1,165% growth.

“They are all great companies, however, these companies haven’t embraced digital capital at the end of the day,” said Saylor.
He pointed out that while Nvidia’s approach is more challenging to imitate, MicroStrategy’s is easier, the company has been “publishing the playbook” and will keep doing so.

“We truly represent the start of a wave of digital transformation of capital; we don’t just represent a company that made a wise investment at the right time,” he continued.

The company also disclosed plans to raise $42 billion over three years to amass additional Bitcoin. The “21/21 plan,” will consist of $21 billion in equities and $21 billion in fixed-income securities over the next three years.