What caused MSTR's earnings to decline in 2024?

MicroStrategy Inc. (MSTR) experienced a decline in earnings in 2024 due to a combination of factors: 1. **Revenue Shortfall**: The company's total revenue fell short of expectations, with reported revenues of $116.1 million for Q3 2024 missing analyst estimates of $122.66 million. This trend was consistent with earlier quarters, where Q1 and Q2 revenues also declined year-over-year. 2. **Operating Expenses Increase**: MicroStrategy saw a significant surge in operating expenses, which skyrocketed by 301.6% year-over-year, reaching $514.3 million. This increase was primarily driven by substantial digital asset impairment losses of $412.1 million. 3. **Digital Asset Impairment Losses**: The company's substantial investment in digital assets, including Bitcoin, resulted in considerable impairment losses. These losses, amounting to $412.1 million for Q3 2024, significantly contributed to the net loss of $340.2 million for the quarter. 4. **Strategic Initiatives**: While the company's strategic initiatives, such as the "21/21 Plan", aimed to leverage digital transformation for increasing shareholder value, the transition also incurred significant costs and risks. In summary, MicroStrategy's earnings decline in 2024 was primarily caused by revenue shortfalls, increased operating expenses, digital asset impairment losses, and strategic initiatives.