Microstrategy Grows Bitcoin Reserves, Accumulating 158,400 BTC in Total

Microstrategy Reports Revenue Growth Despite Bitcoin Impairments in Q3

This week, Microstrategy released its Q3 2023 Earnings Presentation, which provides an overview of the company’s financial status. Despite incurring impairment losses of $33.6 million on its bitcoin holdings, the firm reported a 3.3% increase in total revenues to $129.5 million for the quarter.

Bitcoin Holdings and Acquisitions

Microstrategy’s founder, Michael Saylor, revealed that the company purchased an additional 155 BTC for $5.3 million in October, bringing its total bitcoin holdings to 158,400 BTC.

Growth in Core Revenue Streams

Microstrategy experienced growth across its core revenue streams in Q3. Software licenses revenue increased by 16% to $45 million, while subscription services revenue grew by 28% to $21 million.

Net Loss Driven by Bitcoin Impairments

Despite the revenue growth, Microstrategy reported a net loss of $143.4 million for the quarter. This loss was primarily due to impairment losses on its bitcoin holdings as cryptocurrency prices declined during the bear market.

Commitment to Bitcoin Investment

Despite the impairment losses, Microstrategy remains committed to its bitcoin investment strategy. The company continues to acquire and hold bitcoin, adding 6,067 bitcoins since the end of Q2.

Excitement Surrounding Bitcoin ETF Approval

The release of Microstrategy’s financial results coincides with anticipation surrounding the potential approval of a spot bitcoin exchange-traded fund (ETF) by the SEC. Financial institutions like Blackrock and Fidelity have submitted their applications and are eagerly awaiting regulatory approval.

Hot Take: Microstrategy Continues to Bet on Bitcoin

Microstrategy’s Q3 financial results reveal both revenue growth and net losses due to bitcoin impairments. Despite this, the company remains committed to its bitcoin investment strategy and continues to acquire more bitcoins. With the anticipation of a potential bitcoin ETF approval, Microstrategy’s bet on bitcoin could prove lucrative in the long run.