Since the beginning of this year, MicroStrategy has consistently taken advantage of Bitcoin when Bitcoin was trading in the range of $25,000 to $30,000. Recent news has garnered everyone’s attention as MicroStrategy added a significant amount of Bitcoin since the end of Q2.
MicroStrategy’s successful year with Cryptocurrency
On November 1, 2023, MicroStrategy, the business intelligence firm, announced its third-quarter 2023 financial report, showing an impressive paper gain of $900 million on its substantial holding of 158,400 Bitcoins. It has also been observed that the firm consistently shows its support for Bitcoin, and since the third quarter, the company added a significant 6,067 Bitcoins, including 155 in October.
MicroStrategy’s CEO, Phong Le, emphasized their strong commitment to their Bitcoin strategy. Le stated,
“Our commitment to acquire and hold Bitcoin remains strong, especially with the promising backdrop of potential increased institutional adoption.”
Profits soar with a holding of 158,400 Bitcoins
While the company’s revenue saw a 3% year-on-year growth, reaching $129.5 million for the quarter, it still recorded a net loss of $143.4 million. The losses were partially attributed to digital asset impairment and income taxes, totaling $33.6 million and $109.6 million, respectively.
During the third quarter, Bitcoin experienced a temporary dip, falling 11.5% from $30,480 to $27,590. MicroStrategy used this opportunity to purchase 6,067 Bitcoins at an average price of $27,590, ultimately capitalizing on the market’s fluctuations.
In addition to their Bitcoin holdings, MicroStrategy remains optimistic about its AI-integrated business analytics products. The company reported a 16% increase in software licenses and a 28% increase in subscription services year-over-year. CEO Phong Le expressed confidence in their position, stating, “We believe MicroStrategy is well-positioned to capitalize on both the tailwinds in Bitcoin and the growth in our BI business.”
Following these developments, MicroStrategy’s stock price (MSTR) increased by 2.7% in after-hours trading, reaching $438, according to Google Finance. The company’s continued success in the crypto space reaffirms its belief in the long-term value of Bitcoin and its potential for institutional adoption.