MicroStrategy Reports Q3 Earnings; $900M Gain on Bitcoin Holdings

MicroStrategy (MSTR), a prominent business intelligence firm, founded by Michael Saylor, has revealed a remarkable paper gain of $900 Million on its holdings of 158,400 Bitcoin. The company’s confidence in Bitcoin’s future is bolstered by the anticipation of potential approval for spot Bitcoin exchange-traded funds (ETFs).

In a recent filing on November 1, MicroStrategy disclosed that it acquired an additional 6,067 Bitcoin (BTC) since the third quarter, with 155 more purchased in October. The CEO Phong Le emphasized the company’s unwavering commitment to its Bitcoin strategy, stating, “Our commitment to acquire and hold Bitcoin remains strong, especially with the promising backdrop of potential increased institutional adoption.”

MicroStrategy reported a net loss of $143.4 Million. Yet, their Q3 financial statement showed a 3% year-over-year increase in total revenue as they hit $129.5 Million. These losses were mainly due to digital asset impairment losses, amounting to $33.6 Million, and income taxes. It contributed about $109.6 Million to the overall net losses.

In the third quarter, BTC saw a notable 11.5% decrease in its price. It fell from $30,480 to $26,970. MicroStrategy took advantage of this downward trend and acquired 6,067 BTC at an average cost of $27,590. This way, it strategically positions itself to benefit from the subsequent price upswing.

The company also expressed confidence in its position regarding artificial intelligence-integrated business analytics products. MSTR reported a 16% increase in software licenses and a substantial 28% growth in subscription services year-over-year.

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

Price Performance of MicroStrategy

MicroStrategy’s stock price, denoted as MSTR, saw a notable increase of 2.7% in after-hours trading, reaching $438, as reported by Google Finance. This surge in stock price is indicative of investor optimism surrounding the company’s Bitcoin holdings and its ability to leverage them effectively.

Remarkably, MicroStrategy’s Bitcoin holdings, with a cost basis of $29,586, have resulted in a substantial profit of $900 Million. This impressive gain alone is equivalent to seven years’ worth of the company’s annual revenue, showcasing the significant impact of their Bitcoin investment on their financial performance.

As Saylor’s company continues to strengthen its position in both the Bitcoin market and the business intelligence sector. The company’s strategy remains closely aligned with its commitment to Bitcoin, leveraging the potential for increased institutional adoption and overall growth in the cryptocurrency market.

With its impressive gains and resilient approach, MicroStrategy remains a notable player in the evolving landscape of digital assets and business intelligence.