Answering the question, MicroStrategy has indeed amplified its Bitcoin portfolio. The software behemoth has added to its Bitcoin (BTC) holdings since the conclusion of Q2 in 2023, raising its total Bitcoin possession to a whopping 158,400.
MicroStrategy Continues to Boost Its Bitcoin Holdings
In a recent financial disclosure, MicroStrategy confirmed that it had bought additional Bitcoin since Q2 2023. This acquisition increases MicroStrategy’s share of Bitcoin’s circulating supply to approximately 0.75%. The company divulged in a press release that it had purchased an extra 6,067 bitcoins, costing $167 million, since Q2 2023’s end. As a result, MicroStrategy, the most significant corporate holder of Bitcoin, now possesses a total of 158,000 Bitcoin, acquired for $4.69 billion at an average cost of $29,585 per coin.
MicroStrategy’s Chairman, Michael Saylor, disclosed on X (formerly Twitter) that the company bought 155 BTC for $5.3 million in October alone. He invited everyone to join them in discussing their Q3 2023 financial results and answering queries about the outlook for Business Intelligence and Bitcoin.
MicroStrategy’s Persistent Commitment to Bitcoin
Andrew Kang, MicroStrategy’s Chief Financial Officer, asserted during the company’s financial results for the three-month period ending September 30, 2023, that the company is committed to acquiring more Bitcoin, anticipating increased institutional adoption. He also shed light on the company’s total revenues, which saw a 3% increase year-over-year. Despite the company’s strong balance sheet growth, the increase in total revenues indicates the resilience of their software business, laying a solid foundation to leverage AI in BI.
MicroStrategy’s Increased Net Loss
Despite the revenue surge, MicroStrategy reported a net loss of $143.4 million, a significant increase from the $27 million loss in the same period last year. Over the three months, MicroStrategy also experienced an impairment loss of $125.8 million on its Bitcoin holding. The company clarified that the provision for income taxes of $109.6 million and $24.0 million for the third quarter of 2023 and 2022, respectively, were reflected in the net loss. This was primarily due to changes in the valuation allowance on the company’s deferred tax asset related to the impairment on its bitcoin holdings.
Despite the increased net loss, MicroStrategy made unrealised gains of over $100 million on its Bitcoin position in October. The International Business Times reported that the company made unrealised gains of $174 million when the price of Bitcoin, the world’s largest crypto asset, exceeded the $30,000 mark.
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