MicroStrategy, the largest independent publicly traded business intelligence company, has been making headlines once again as it continues to add to its impressive Bitcoin holdings.
In October, the company purchased an additional 155 bitcoins for a total of $5.3 million, bringing its total Bitcoin holdings to a staggering 158,400 bitcoins.
This strategic move was fueled by the rise in the price of Bitcoin, which was tantalizingly close to reaching $35,000 over the past month.
MicroStrategy President and Founder Michael Saylor shared this update and also hinted at the company’s upcoming third-quarter earnings release.
In October, @MicroStrategy acquired an additional 155 BTC for $5.3 million and now holds 158,400 BTC. Please join us at 5pm ET as we discuss our Q3 2023 financial results and answer questions about the outlook for #BusinessIntelligence and #Bitcoin. $MSTR https://t.co/w7eRUcGobi
— Michael Saylor⚡️ (@saylor) November 1, 2023
This move was not surprising, considering that just over a month ago, the company announced the acquisition of 5,445 bitcoins for $147.3 million at an average cost of $27,053 per bitcoin between August 1 and September 24. This smart investment allowed MicroStrategy to enjoy significant gains like Bitcoin.
MICROSTRATEGY PROFIT/LOSS BALANCES
MicroStrategy’s commitment to accumulating and holding Bitcoin, remains unwavering, and this is primarily due to the promising prospects of greater institutional adoption of the cryptocurrency.
Excitement in the cryptocurrency world is surrounding the possible approval of spot Bitcoin exchange-traded funds (ETFs), which could open the doors to more significant investments in this digital asset.
However, although MicroStrategy’s Bitcoin holdings continue to grow, the company reported mixed financial results for the third quarter of 2023.
On the one hand, its total revenue increased by 3.3%, reaching $129.5 million. This growth was attributed to continued expansion of the cloud sector and a strong quarter in product licensing revenue. Software licensing revenue increased 16% year-over-year and subscription services revenue saw impressive year-over-year growth of 28%.
On the other hand, MicroStrategy reported a net loss of $143.4 million for the same period, a substantial contrast from a year earlier, when the net loss was $27 million in the third quarter.
This loss was mainly due to income tax provisions, with $109.6 million for the third quarter of 2023 compared to $24.0 million in the same period of 2022.
The company’s share price remained relatively stable after the publication of this financial news, indicating that investors are closely following MicroStrategy’s movements in both the cryptocurrency and business intelligence sectors.
As MicroStrategy strengthens its position in Bitcoin and continues to expand its software and cloud offerings, it remains a company to watch in the ever-evolving world of digital assets and technology.