MicroStrategy’s $900M Gain on Bitcoin Holdings

MicroStrategy remains committed to its Bitcoin strategy and is confident in its business analytics products.

MicroStrategy's $900M Gain on Bitcoin Holdings
MicroStrategy's $900M Gain on Bitcoin Holdings

Due to optimism regarding the potential approval of spot Bitcoin exchange-traded funds, business intelligence firm MicroStrategy has recorded a paper gain of $900 million on its stack of 158,400 Bitcoin.

The company founded by Michael Saylor has added 6,067 bitcoins (BTC) since the third quarter, including 155 more in October, according to MicroStrategy’s November 1 earnings report.

MicroStrategy CEO Phong Le stated that the company will not abandon its Bitcoin strategy anytime soon.

“Our commitment to acquire and hold bitcoin remains strong, especially with the promising backdrop of potential increased institutional adoption.”

The company’s quarterly revenue increased by 3% year-over-year to $129.5 million, but it was not enough to prevent a net loss of $143.4 million.

$33.6 million is attributable to impairment losses and income taxes on digital assets. The firm noted that the total net losses amounted to $109.6 million.

Despite Bitcoin’s recent price increase, BTC dropped 11.5% from $30,480 to $26,970 during the third quarter (July 1 to September 30).

MicroStrategy took advantage of this decline by purchasing 6,067 BTC at an average price of $27,567.

The company is also confident in the position of its artificial intelligence-integrated business analytics products, as its software licensing and subscription services have increased by 16% and 28%, respectively, over the past year.

“We believe MicroStrategy is well situated to capitalize on both the tailwinds in Bitcoin and growth in our BI business,” Le said.

According to Google Finance, the after-hours trading price for MicroStrategy (MSTR) has increased by 2.7% to $438.