What caused MSTR's net profit to plummet in Q3 2024?

MicroStrategy's net profit plummeted in Q3 2024 primarily due to **Significant Digital Asset Impairment Losses** and **Operating Expenses Increase**.

1. **Digital Asset Impairment Losses**: The most notable factor contributing to the net loss was the digital asset impairment losses amounting to $412.1 million. This was a significant increase from the previous year, indicating a potential devaluation of their Bitcoin holdings or an accounting adjustment related to these holdings. MicroStrategy's substantial Bitcoin exposure makes it vulnerable to the volatility of the cryptocurrency market.
2. **Operating Expenses Increase**: The company's operating expenses increased by 301.6% year-over-year, reaching $514.3 million. This substantial rise is attributed to the digital asset impairment losses mentioned earlier. The cost associated with maintaining and scaling up their Bitcoin holdings has had a direct impact on their net profit margin.

In summary, the combination of significant digital asset impairment losses and increased operating expenses led to MicroStrategy's net profit plummeting in Q3 2024.