MicroStrategy Increases Bitcoin Holdings
Software company MicroStrategy has announced that it has acquired more Bitcoin since the end of Q2 2023. The additional purchase brings MicroStrategy’s total Bitcoin holdings to 158,400, which accounts for about 0.75% of Bitcoin’s circulating supply. The company purchased another 6,067 bitcoins for $167 million. MicroStrategy now owns a total of 158,000 Bitcoin, acquired at an average price of $29,585 per coin.
Continued Commitment to Bitcoin Acquisition
MicroStrategy’s Chairman, Michael Saylor, revealed on Twitter that the company bought an additional 155 BTC for $5.3 million in October alone. The company remains committed to acquiring more Bitcoin as it anticipates increased institutional adoption.
Financial Results and Revenues
In its financial results for the three-month period ending September 30, 2023, MicroStrategy’s Chief Financial Officer, Andrew Kang, stated that the company remains committed to acquiring and holding Bitcoin. He also mentioned that the company’s total revenues increased by 3% year-over-year.
Net Loss and Impairment Loss
Despite an increase in revenue, MicroStrategy reported a net loss of $143.4 million for the quarter. This is significantly larger than the $27 million loss reported in the same period last year. The company also experienced an impairment loss of $125.8 million in its Bitcoin holdings.
Unrealised Gains
In October, it was revealed that MicroStrategy made unrealised gains of over $100 million for its Bitcoin position when the price surpassed $30,000. According to a report by the International Business Times, the company made unrealised gains of $174 million.
Hot Take: MicroStrategy Continues to Expand Bitcoin Holdings
MicroStrategy’s recent announcement of acquiring more Bitcoin shows the company’s continued commitment to cryptocurrency. With a total of 158,400 Bitcoin and plans for further acquisition, MicroStrategy is positioning itself as a major player in the crypto market. Despite reporting a net loss and an impairment loss, the company’s optimism remains strong, fueled by potential increased institutional adoption. As Bitcoin continues to gain traction, MicroStrategy’s strategic approach to cryptocurrency investment may prove to be profitable in the long run.
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