TYSONS CORNER, Va.--(BUSINESS WIRE)--MicroStrategy® Incorporated (Nasdaq: MSTR) (“MicroStrategy”) today announced the pricing of its offering of $700 million aggregate principal amount of 0.625% convertible senior notes due 2030 (the “notes”). The notes will be sold in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). MicroStrategy also granted to the initial purchasers of the n ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Key TakeawaysMicroStrategy shares, which gained 24% on Monday, moved lower in premarket trading Tuesday after the Bitcoin development company announced a $600 million convertible senior notes offering to buy more Bitcoin.The company purchased an additional 3,000 bitcoins between Feb. 15 and Feb. 25, taking its total holding to 193,000 bitcoins.MicroStrategy's 2021 high at $1,315 may become a future support area on the chart if the price continues its upward momentum. MicroStrategy (MSTR) shares, which gaine ...

TYSONS CORNER, Va.--(BUSINESS WIRE)--MicroStrategy® Incorporated (Nasdaq: MSTR) (“MicroStrategy”) today announced that it intends to offer, subject to market conditions and other factors, $600 million aggregate principal amount of convertible senior notes due 2030 (the “notes”) in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). MicroStrategy also expects to grant to the initia ...

In an interesting turn of events, the short interest in MicroStrategy (NASDAQ: MSTR) has reached a massive figure of $3 billion, or 20% of its float, suggesting that the investors doing the short selling are exceptionally bearish on its future price, but also indicating the possibility of a mega short squeeze.Indeed, despite a recent rally for Bitcoin (BTC), to which MicroStrategy grants indirect exposure, some investors are betting a lot of money against MSTR, with the short bets accounting for about 20% o ...

Few years in recent memory have been as good for Bitcoin (BTC) as 2024. The world’s premier cryptocurrency not only saw the approval of the first-ever U.S. spot BTC exchange-traded funds (ETFs) but has also been surging in the crypto market.In fact, Bitcoin price rose 40.11% year-to-date (YTD) from approximately $44,000 to its press time price of $61,937.BTC YTD price chart. Source: FinboldStill, one Bitcoin-related stock has managed to outperform the world’s foremost cryptocurrency with its yearly growth – ...

Michael Saylor, chairman and chief executive officer of MicroStrategy, first got into bitcoin in 2020, when he decided to start adding the cryptocurrency to MicroStrategy's balance sheet as part of an unorthodox treasury management strategy.When MicroStrategy's Michael Saylor came on CNBC's "Closing Bell: Overtime" in December to talk about crypto, he said "the one thing we can count on is bitcoin goes forward in the year 2024, and a strategy built around bitcoin is generally a pretty safe one for instituti ...

Shares of technology company MicroStrategy (MSTR 15.86%) surged to a new 52-week high on Monday, after the company disclosed that it had bought more Bitcoin (BTC 5.41%). On top of MicroStrategy's new purchase, Bitcoin itself is having a good day, up about 5% over the past 24 hour hours. For its part, MicroStrategy stock was up 16% as of 3:20 p.m. ET.An unbelievable amount of BitcoinFrom Feb. 15 through Feb. 25, MicroStrategy was buying Bitcoin. The company wound up buying 3,000 additional bitcoins for $155 ...

Shares of data analytics expert MicroStrategy (MSTR -2.57%) have been riding the Wall Street roller coaster in recent years. Crypto investors may recognize the general shape of this stock's long-term chart, since it has become a fairly tight proxy for the price moves of Bitcoin (BTC 1.46%): As such, MicroStrategy sports a highly volatile stock whose market price is based on a daring financial strategy. The fundamental business operations don't seem to matter anymore, despite MicroStrategy's years of experie ...

Bitcoin Holdings and Strategy - MicroStrategy considers itself the world's first Bitcoin development company, focusing on Bitcoin network development through financial markets, advocacy, and technology innovation[19] - In 2023, the company purchased approximately 56,650 bitcoins at an aggregate price of $1.902 billion, with an average purchase price of $33,580 per bitcoin[26] - As of December 31, 2023, the company held approximately 189,150 bitcoins, valued at $3.626 billion on the balance sheet, with cumulative impairment losses of $2.269 billion[27] - As of February 14, 2024, the company held approximately 190,000 bitcoins, acquired at an aggregate purchase price of $5.933 billion, with an average purchase price of $31,224 per bitcoin[28] - The company's Bitcoin acquisition strategy involves using excess liquid assets and proceeds from debt or equity financings to purchase bitcoin, with no specific target for holdings[23] - The company did not sell any bitcoin in 2023 or during the period from January 1, 2024, to February 14, 2024[26] - The company holds its bitcoin with U.S.-based, institutional-grade custodians to mitigate counterparty risk and diversify custody arrangements[43] - The company carefully selects bitcoin custodians with strict security protocols, including multifactor authentication and offline "cold" storage for private keys, to mitigate risks of unauthorized access and cyberattacks[44] - The company conducts ongoing due diligence reviews of custodians, including reviewing Services Organization Controls reports and verifying financial solvency, regulatory compliance, and security protocols[45] - The company negotiates contractual terms to ensure its bitcoin holdings are protected from custodian bankruptcy or insolvency, based on existing law and regulatory regimes[46] - Bitcoin is viewed as an attractive asset due to its limited supply, potential as a hedge against inflation, and opportunity for value appreciation with increased adoption[47] - The Bitcoin network's decentralization mitigates risks like denial-of-service attacks and 51% attacks, but private keys remain vulnerable to phishing, hacking, and loss[48] - The company believes bitcoin serves as a store of value amid economic uncertainty, geopolitical tensions, and inflationary measures, with potential for appreciation if adoption grows[51] - Bitcoin holdings significantly impact the company's financial results, with potential material impairment charges and gains from sales above carrying costs[100] - The company generated a $553.6 million tax benefit in 2023 due to the release of a valuation allowance on deferred tax assets related to bitcoin holdings[103] - As of December 31, 2023, the company had $757.6 million in deferred tax assets, with a $1.4 million valuation allowance[104] - Bitcoin's price volatility poses risks, with historical trading prices ranging below $20,000 and above $50,000 per bitcoin in the past 12 months[112] - The company may face increased tax liabilities if bitcoin is sold above its cost basis, potentially resulting in material tax obligations[105] - Adoption of ASU 2023-08 in 2025 will require the company to measure bitcoin at fair value, increasing financial result volatility[119] - The company's bitcoin acquisition strategy is untested over extended periods and under different market conditions, posing potential risks[114] - Counterparty risks, including custodian insolvency, could impact the company's access to and ownership of custodially-held bitcoin[115] - The broader digital assets industry's counterparty risks, highlighted by recent bankruptcies and regulatory actions, may negatively impact bitcoin adoption and price[117] - Changes in the accounting treatment of bitcoin holdings could lead to significant accounting impacts and increased financial result volatility[119] - Bitcoin price volatility significantly impacts the company's financial results and stock price, with past decreases in 2022 causing adverse effects[121] - The company carried $3.626 billion of digital assets on its balance sheet as of December 31, 2023, consisting of approximately 189,150 bitcoins, reflecting $2.269 billion in cumulative impairment losses due to bitcoin price fluctuations[136] - Digital asset impairment losses, net of gains on sale, amounted to $1.286 billion for the year ended December 31, 2022, representing 76.9% of the company's operating expenses and contributing to a net loss of $1.470 billion for the same period[136] - The company expects increased volatility in its earnings due to the adoption of ASU 2023-08, which will require measuring bitcoin holdings at fair value and recognizing gains and losses in net income each reporting period, effective from January 1, 2025[135][137] - The company plans to purchase additional bitcoin in future periods, which will increase the proportion of total assets represented by bitcoin holdings, potentially leading to greater earnings volatility[137] - Approximately 16,931 bitcoins serve as collateral for the company's 2028 Secured Notes as of February 14, 2024, and the company may consider issuing additional debt or financial instruments collateralized by bitcoin holdings[145] - The company may face enhanced regulatory scrutiny due to its bitcoin holdings and related transactions, including compliance with anti-money laundering and sanctions laws[144][145] - The collapse of FTX in November 2022 has increased regulatory focus on the digital assets industry, potentially leading to new regulatory requirements and enforcement actions that could impact the company's ability to hold and transact in bitcoin[146] - The unregulated nature and lack of transparency in bitcoin trading venues may result in fraud, security failures, or operational problems, potentially leading to a loss of confidence in bitcoin trading venues and adversely affecting the value of the company's bitcoin holdings[148] - Company holds approximately 190,000 bitcoins acquired at an aggregate purchase price of $5.933 billion as of February 14, 2024, with plans to increase holdings[150] - Bitcoin holdings are less liquid than cash and cash equivalents, and may not serve as a reliable source of liquidity during market instability[155] - Bitcoin price experienced a significant decline in 2022, and future declines could have a pronounced impact on the company's financial condition[150] - The emergence or growth of other digital assets, including stablecoins and CBDCs, could negatively impact bitcoin's market price and the company's financial condition[151][153][154] - Security breaches or cyberattacks on the company or its third-party service providers could result in the loss of bitcoin and adversely affect financial condition[156][157][158] - The company's bitcoin holdings are insured for only a small fraction of their total value, and insurance may not cover losses in insolvency proceedings[160] - Regulatory changes reclassifying bitcoin as a security could lead to the company being classified as an "investment company" under the Investment Company Act of 1940, imposing additional regulatory controls[162][163] - A significant decrease in the market value of bitcoin holdings could adversely affect the company's ability to service its indebtedness[164][166] - The company's bitcoin acquisition strategy exposes it to the risk of non-performance by counterparties, including execution partners and custodians[167] - The company faces significant counterparty risks related to its bitcoin holdings due to recent bankruptcies and regulatory actions in the digital asset industry, including those involving Three Arrows Capital, Celsius Network, Voyager Digital, FTX Trading, and Genesis Global Capital[168] - The company's custodially-held bitcoin could become part of a custodian's insolvency estate if one or more custodians enter bankruptcy or similar proceedings, potentially impacting its business and financial condition[169] Financial Performance and Risks - The company's cash and cash equivalents stood at $46.8 million as of December 31, 2023, compared to $43.8 million as of December 31, 2022[27] - The company held $46.8 million in cash and cash equivalents as of December 31, 2023, compared to $43.8 million as of December 31, 2022[136] - The company had $236.7 million in deferred revenue and advance payments as of December 31, 2023, which may not be representative of actual revenue in future periods due to customer changes or delays[174] - The company's top three product licenses transactions in 2023 totaled $8.9 million, representing 11.8% of total product licenses revenue, down from $13.1 million (15.1%) in 2022[180] - The company's international revenues accounted for 42.7%, 41.0%, and 44.7% of total revenues for the years ended December 31, 2023, 2022, and 2021, respectively[203] - The company faces risks from third-party software dependencies, including potential license terminations, increased costs, and infringement liabilities[191][199] - Changes in third-party software or systems could require significant capital investment and resources to maintain software interoperability[192] - The company is exposed to risks from undetected software errors, bugs, or security vulnerabilities, which could lead to lost revenue and reputational damage[193] - The company may be obligated to disclose proprietary source code to customers, potentially reducing support service renewals and intellectual property protection[196][197] - The company faces risks from intellectual property infringement claims, which could result in litigation, redesign costs, or product discontinuation[198][201] - Business disruptions, including geopolitical tensions, natural disasters, and cyberattacks, could severely impact operations and customer retention[202] - The company is exposed to risks from fluctuating foreign currency exchange rates, regulatory changes, and trade barriers in international markets[204] - Compliance with government contracting requirements poses risks, including potential contract termination, fines, and reputational harm[212] - The company faces risks from economic and legal uncertainties, including tariffs and trade restrictions, which could adversely affect international operations[205] Regulatory and Compliance - The company is subject to GDPR in the EU, which can impose fines of up to €20,000,000 or 4% of global annual revenue for non-compliance[80] - In China, the company is subject to the Personal Information Protection Law (PIPL), which can impose fines of up to ¥50 million or 5% of annual revenue for violations[88] - The company is subject to the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA), which require substantial resources for compliance and could result in fines or litigation[90][91] - The company is preparing for potential comprehensive privacy legislation in the US, which could impact business practices and relationships with partners and customers[92] - The company is subject to GDPR requirements, which include potential fines of up to €20,000,000 or 4% of global annual revenue, whichever is higher, for non-compliance[218] - The company transitioned to reliance on Standard Contractual Clauses (SCCs) for lawful data transfers from the EU to the US following the invalidation of the U.S.-EU Privacy Shield[218] - The company faces risks of enforcement actions from State Attorneys General and other regulatory agencies for privacy and data security violations[216] - The company may be required to pay fines and adhere to specific privacy and data security practices as part of potential FTC enforcement actions[216] - The company is subject to HIPAA regulations for handling protected health information, with potential civil and criminal penalties for non-compliance[215] - The company faces risks of sanctions, fines, and liabilities from government entities or private plaintiffs in litigation due to data breaches or non-compliance with privacy laws[217] - The company is monitoring the development of new privacy and data security rules by the FTC, which may impact its business practices[216] Technology and Innovation - The company is developing software products leveraging the Lightning Network and exploring Bitcoin blockchain-based technology innovations[24] - The MicroStrategy ONE platform integrates Generative AI capabilities, enabling non-technical users to access actionable insights through conversational AI[63] - MicroStrategy ONE offers key capabilities, including cloud-native architecture, an AI assistant (Auto), HyperIntelligence for context-based insights, and an Enterprise Semantic Graph for trustworthy data[65] - The MicroStrategy Cloud for Government service is FedRAMP-authorized, meeting rigorous U.S. federal cloud security and data protection standards[66] - MicroStrategy sells its software under two pricing models: traditional enterprise licensing for on-premise deployments and subscriptions for cloud-based deployments[71] - The company has established strategic partnerships with cloud hosting providers (AWS, Microsoft, Google), system integrators, consulting firms, VARs, MSPs, and ISVs to resell, support, or extend the MicroStrategy platform[73] - Significant financial investments are made with channel partners, including technical training, certifications, and co-marketing programs to minimize customer risk and maximize ROI on business intelligence projects[74] - The analytics market is highly competitive, with key competitors including IBM, Microsoft, Oracle, Salesforce, and SAP, with competition factors including software quality, AI integration, and product differentiation[77] - Integration of AI into the company's product offerings and operations could result in reputational harm, legal liability, and increased costs, especially with emerging legal and regulatory challenges[185] - The company's ability to develop and release new software offerings or enhancements in a timely and cost-effective manner is critical to its future success, as delays or failures could materially adversely affect its business and financial condition[189] Human Resources and Organizational Structure - As of December 31, 2023, the company had 1,934 employees, with 642 based in the US and 1,292 internationally, and no US employees are represented by labor unions[93] - Employee headcount decreased from 2,152 in 2022 to 1,934 in 2023, with reductions in product support, consulting, sales and marketing, and R&D departments[94] - The company expanded equity compensation programs worldwide in 2023 to provide employees with greater opportunities to share in stock appreciation[95] - The company's future success depends on the continued service of Michael J. Saylor, Chairman of the Board of Directors and Executive Chairman, and the ability to attract, train, assimilate, and retain highly skilled personnel[214] Market and Industry Trends - The Bitcoin protocol limits the total supply to 21 million, with the mining reward expected to halve to 3.125 bitcoin per block in April 2024[31] - FTX received approval to sell up to $3 billion worth of digital assets, including bitcoin, in September 2023[122] - Regulatory uncertainty and potential new laws could materially impact bitcoin's price and ownership, including President Biden's executive order on cryptocurrencies in March 2022[123][124] - The SEC has proposed amendments to the definition of "exchange" to include digital asset trading systems, which could have a sweeping impact on the industry[126] - The European Union's Markets in Crypto Assets Regulation (MiCA) became effective in June 2023, with sustainability standards for consensus mechanisms like Bitcoin's proof-of-work[126] - The SEC filed complaints against Binance Holdings Ltd. and Coinbase, Inc. in June 2023, alleging various violations of securities laws[126] - The UK's Financial Services and Markets Act 2023 (FSMA 2023) became law in June 2023, subjecting cryptoassets to regulated activities and financial promotion orders[126] - The Federal Reserve established a Novel Activities Supervision Program in August 2023 to enhance oversight of crypto-related activities by banking organizations[131] - The White House released a framework for digital asset development in September 2022, encouraging regulatory actions and the development of innovative technologies[125] - The SEC Chair announced in April 2022 efforts to register and regulate digital asset platforms like securities exchanges[126] - The SEC approved the listing and trading of spot bitcoin ETPs on January 10, 2024, with a trading volume of $4.6 billion on the first trading day, which may adversely affect the market price of the company's class A common stock[139][142] Privacy and Data Security - The company faces significant risks related to privacy and data protection laws, including potential enforcement actions from the FTC and other regulatory agencies, which could result in fines and compliance requirements[215][216] - The company stores a substantial amount of customer and employee data, including personal data, on its networks and cloud environments, subject to expanding privacy regulations in the EU, China, and the US[215] - The company is subject to GDPR requirements, which include potential fines of up to €20,000,000 or 4% of global annual revenue, whichever is higher, for non-compliance[218] - The company transitioned to reliance on Standard Contractual Clauses (SCCs) for lawful data transfers from the EU to the US following the invalidation of the U.S.-EU Privacy Shield[218] - The company faces risks of enforcement actions from State Attorneys General and other regulatory agencies for privacy and data security violations[216] - The company may be required to pay fines and adhere to specific privacy and data security practices as part of potential FTC enforcement actions[216] - The company is subject to HIPAA regulations for handling protected health information, with potential civil and criminal penalties for non-compliance[215] - The company faces risks of sanctions, fines, and liabilities from government entities or private plaintiffs in litigation due to data breaches or non-compliance with privacy laws[217] - The company is monitoring the development of new privacy and data security rules by the FTC, which may impact its business practices[216]