MicroStrategy Continues Bitcoin Buying Spree
MicroStrategy Chairman and founder Michael Saylor announced that the company acquired an additional 155 bitcoin for $5.3 million in October. This comes after a surge in the price of bitcoin, the most popular cryptocurrency. Saylor also revealed that MicroStrategy now holds a total of 158,400 bitcoin. Just over a month ago, the company reported purchasing 5,445 bitcoins for $147.3 million between August and September.
The company’s recent bitcoin purchases have resulted in significant gains as the price of the digital asset reached nearly $35,000 in October. The current price of bitcoin remains just below that level as anticipation builds around the potential approval of spot bitcoin ETFs.
MicroStrategy’s Chief Financial Officer, Andrew Kang, expressed confidence in their commitment to acquiring and holding bitcoin due to the promising potential for increased institutional adoption.
MicroStategy Reports Revenue Growth but Posts Loss
In its earnings report, MicroStrategy revealed that it added 6,067 bitcoins for $167 million since the end of the second quarter, at an average price of $27,531 per bitcoin.
Despite a 3.3% increase in third-quarter revenues to $130 million, MicroStrategy reported a net loss of $143.4 million during the period. This represents a significant decline compared to last year’s net loss of $27 million in the same quarter.
The company attributed its net loss to provisions for income taxes and changes in the valuation allowance on its deferred tax asset related to the impairment on its bitcoin holdings.
Following the release of its earnings report, MicroStrategy’s share price remained relatively stable.
MicroStrategy emphasized its commitment to acquiring and holding bitcoin, citing the potential for increased institutional adoption as a promising factor.
Hot Take: MicroStrategy’s Bitcoin Holdings Drive Growth and Loss
MicroStrategy’s recent bitcoin purchases have resulted in significant gains as the price of the cryptocurrency surged in October. However, despite reporting revenue growth, the company posted a substantial net loss for the third quarter. The loss was attributed to provisions for income taxes and changes in the valuation allowance on its deferred tax asset related to its bitcoin holdings. Nevertheless, MicroStrategy remains committed to acquiring and holding bitcoin, expressing optimism about increased institutional adoption. As the market continues to evolve, it will be interesting to see how MicroStrategy’s bitcoin strategy impacts its future financial performance.
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