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Software giant MicroStrategy announced that it has increased its Bitcoin (BTC) holdings since the end of the second quarter of 2023. The company purchased an additional 6,067 Bitcoin, bringing its total holdings to 158,400.
MicroStrategy buys more Bitcoin
In its latest financial results, software company MicroStrategy revealed that it has purchased more Bitcoin since the end of Q2 2023. The company’s additional purchase means MicroStrategy now holds approximately 0.75% of the circulating Bitcoin supply. In a press release, the company announced that it had purchased an additional 6,067 Bitcoins for $167 million since the end of the second quarter of 2023. MicroStrategy, the largest corporate holder of Bitcoin, now owns a total of 158,000 Bitcoins, which it acquired for an average price of $29,585 per coin.
MicroStrategy Chairman Michael Saylor revealed on X (formerly Twitter) that the company purchased 155 BTC for $5.3 million in October alone.
In October, @MicroStrategy acquired an additional 155 BTC for $5.3 million and now holds 158,400 BTC. Please join us at 5:00 PM ET as we discuss our third quarter 2023 financial results and answer questions about the outlook for #BusinessIntelligence and #Bitcoin. $MSTR https://t.co/w7eRUcGobi
— Michael Saylor⚡️ (@saylor) November 1, 2023
MicroStrategy Chief Financial Officer Andrew Kang said in its financial results for the three-month period ended September 30, 2023 that the company remains committed to acquiring more Bitcoin as it expects increased institutional adoption. Kang explained:
“We have further increased our total Bitcoin holdings to 158,400 Bitcoins, adding 6,067 Bitcoins since the end of the second quarter. Our commitment to acquiring and holding Bitcoin remains strong, particularly against the promising backdrop of potentially increased institutional adoption.”
Kang also commented on the company’s overall revenue, which increased 3% year-over-year.
“And as we continue to build our strong balance sheet, our third quarter operating results and total revenue growth reflect the resilience of our software business and provide a solid foundation to benefit from AI in BI.”
MicroStrategy posts a larger net loss
Despite an increase in sales, the company posted a net loss of $143.4 million – a significantly larger loss than the $27 million loss in the same period last year. During the three months, MicroStrategy also recorded a $125.8 million impairment loss on its Bitcoin holdings. The company explained:
“Provisions for income taxes of $109.6 million and $24.0 million for the third quarters of 2023 and 2022, respectively, were reflected in net loss and primarily reflected changes in the valuation allowance of the Company’s deferred tax asset related to the decrease in the value of his Bitcoin holdings. ”
Unrealized gains exceeding $100 million
In October, it was revealed that MicroStrategy made over $100 million in unrealized profits on its Bitcoin position. According to a report by International Business Times, the company made $174 million in unrealized profits as the price of the world’s largest crypto asset crossed $30,000.
Disclaimer: This article is for informational purposes only. It is not offered or intended to constitute legal, tax, investment, financial or other advice.
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