In October, MicroStrategy acquired an additional 155 BTC for $5.3 million, bringing its bitcoin reserves to 158,400 BTC (~$5.6 billion).
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
According to MicroStrategy’s third-quarter earnings report, the total bitcoin purchases during the period amounted to 6,067 BTC at an average price of $27,531.
“Our commitment to acquiring and holding Bitcoin remains firm, especially in the face of the promising backdrop of potential mass adoption [cryptocurrency]. As we continue to strengthen our balance sheet, the third-quarter results and growth in total revenues reflect the strength of our software business and lay the groundwork for capturing value in the AI software segment of Business Intelligence,” said Chief Financial Officer Andrew Kang.
MicroStrategy founder Michael Saylor noted that since the company adopted its Bitcoin investment strategy on 10 August 2020, its stock has risen 242%. Bitcoin prices over that period have risen 192%, while tech giants like Google or Apple posted only double-digit percentage gains.
Consider a #Bitcoin Strategy. pic.twitter.com/tRgIEBVdRp
— Michael Saylor⚡️ (@saylor) November 1, 2023
For the third quarter, MicroStrategy reported year-over-year total revenue growth of 3.3% to $129.5 million. Of the total revenue from the analytics-software provider, the breakdown was as follows:
- $45 million license fees (up 16%);
- $21 million paid subscriptions (up 28%);
- $66.9 million for product support (up 1.3%).
Other income decreased to $17.6 million, or 14.9%.
The company posted a net loss of $143.4 million for the period. The negative result was partly due to an increase in operating expenses by 36% — to $128 million. The figure included a “paper” impairment of digital assets of $33.6 million.
According to BitcoinTreasuries, the potential profit from the company’s Bitcoin position stands at around $0.9 billion.
In the wake of the quarterly report, MicroStrategy’s shares rose in premarket trading to $437 — roughly 2.4% above the November 1 close. In January 2000, the company’s shares traded as high as $1,388.
In July, MicroStrategy left its Chief Revenue Officer Kevin Adkisson, who had served the firm for almost seven years.