MicroStrategy Q3 Income $2.8B Fueled by $12.9B Bitcoin Gain
MicroStrategy reported third-quarter net income of $2.8 billion and diluted EPS of $8.42, surpassing analyst estimates. Operating income reached $3.9 billion. The firm added 42 706 BTC in Q3 for a total of 640 808 BTC at an average cost of $74 032. At a market price of $110 600, these holdings are valued at $70.9 billion, reflecting an unrealized gain of $12.9 billion and a 26% Bitcoin yield year-to-date. MicroStrategy raised $5.1 billion in net proceeds during Q3, plus an additional $89.5 million in early October, boosting cash and equivalents to $54.3 million. The company reaffirmed its full-year targets of a 30% Bitcoin yield and $20 billion in Bitcoin gains by year-end, assuming a $150 000 BTC price. Executive Chairman Michael Saylor highlighted a strategic shift toward digital credit solutions and preferred-share issues to enhance shareholder yield while preserving returns on capital.
Bullish
MicroStrategy’s robust Q3 results, driven by substantial unrealized Bitcoin gains and added BTC accumulation, signal strong institutional demand for Bitcoin. Surpassing earnings estimates and reaffirming ambitious Bitcoin yield targets underpins positive market sentiment. The company’s continued Bitcoin purchases and strategic fundraising increase buying pressure, likely supporting Bitcoin prices in the short term. Its planned digital credit solutions and preferred-share issuances offer new capital channels for further BTC acquisitions, reinforcing long-term bullish prospects.