BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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MicroStrategy Reports Q1 2024 Financial Results Highlighting Continued Investment in Bitcoin
MicroStrategy Incorporated (Nasdaq: MSTR), a leading business intelligence firm and the largest corporate holder of bitcoin, has disclosed its financial outcomes for the first quarter of 2024, emphasizing its aggressive bitcoin acquisition strategy and financial performance metrics.
Key Financial Developments:
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Bitcoin Investment: MicroStrategy has continued its bullish approach on bitcoin, acquiring an additional 25,250 bitcoins since the end of Q4 2023 for $1.65 billion, averaging $65,232 per bitcoin. This purchase increases its total holdings to 214,400 bitcoins, acquired at an average price of $35,180 each, reflecting an impressive portfolio built over several quarters.
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Revenue and Profit Metrics: The company reported total revenues of $115.2 million for Q1 2024, marking a 5% decrease year-over-year. Despite the drop in overall revenue, subscription services saw a 22% increase, signaling strong growth in this segment. Gross profit for the quarter was $85.2 million, with a gross margin of 74.0%, slightly down from 77.1% in Q1 2023.
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Operating Expenses and Losses: The first quarter saw a substantial increase in operating expenses, primarily due to impairment losses on digital assets amounting to $191.6 million. This resulted in a loss from operations of $203.7 million and a net loss of $53.1 million for the quarter.
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Capital Raising through Convertible Notes: MicroStrategy executed two major convertible debt offerings in March 2024. The company raised approximately $800 million through 0.625% Convertible Senior Notes due 2030 and about $603.8 million through 0.875% Convertible Senior Notes due 2031. These moves are part of its broader capital markets strategy to fund its bitcoin acquisitions.
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Digital Asset Strategy and Market Outlook: As of March 31, 2024, the carrying value of MicroStrategy's bitcoin holdings was $5.074 billion, with an original cost basis of $7.535 billion and a market value of approximately $15.220 billion. This significant appreciation highlights the lucrative nature of its investment strategy, especially as the bitcoin market continues to evolve favorably.
Corporate Statements:
Phong Le, President and CEO of MicroStrategy, expressed satisfaction with the adoption of their cloud platform and highlighted the strategic value of their unique bitcoin strategy. CFO Andrew Kang emphasized the role of recent regulatory developments in enhancing bitcoin's appeal to institutional investors, potentially adding long-term value to their holdings.
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