MicroStrategy Inc (NASDAQ: MSTR) founder and Chair Michael Saylor has shared details about the company’s most recent Bitcoin (BTC) expenses. In an X (formerly Twitter) post, Saylor said that MicroStrategy added another 155 BTCs to its portfolio last month, spending $5.3 million in the process.
This comes after the publicly traded business intelligence company announced in a filing that it purchased 5,445 BTCs between August 1 and September 24. According to the filing, the company spent $147.3 million within that period, meaning that it bought the BTCs at an average price of $27,053 per one.
Meanwhile, the latest addition appears to have immediately set MicroStrategy up for some quick gains. That is considering how October saw many of the popular crypto assets surging in price.
Bitcoin, for instance, came close to hitting the $35,000 mark at some point during the last month. However, though the BTC price is still within the same range as of this writing, there are reasons to believe that more gains are on the way.
Much of this excitement about BTC price is tied around the anticipation that spot Bitcoin exchange-traded funds (ETFs) might soon gain the necessary approval. Once they are approved, expectations are that investors will begin to pour money into the new financial instrument, thereby causing a price surge for the prized asset.
According to Andrew Kang, chief financial officer at MicroStrategy, the company will continue to amass Bitcoin. Kang said in a statement:
“Our commitment to acquire and hold bitcoin remains strong, especially with the promising backdrop of potential increased institutional adoption.”
MicroStrategy Releases Q3 2023 Earnings Report
The company also shared what transpired in its finances during the third quarter in an earnings report. Per the report, it appears that MicroStrategy recorded a loss for the quarter despite seeing an increased revenue.
In Q3, the company saw a 3.3% increase in its revenue which made it $130 million. However, it also posted a net loss of $143.4 million during the same period. This loss was considerably larger than the $27 million net loss it posted in the third quarter of 2022.
By the company’s calculations, the net loss reflects its provision for income taxes, which ultimately, is a result of its increasing Bitcoin holding. MicroStrategy said in a statement:
“Provision for income taxes of $109.6 million and $24.0 million for the third quarter of 2023 and 2022, respectively, were reflected in net loss, principally reflecting changes in the valuation allowance on the Company’s deferred tax asset related to the impairment on its bitcoin holdings.”
Since it released its earnings report for the last quarter, the company’s share price has not seen a significant change, according to TradingView.
- RACA PREDICTION. RACA cryptocurrency
- XNA PREDICTION. XNA cryptocurrency
- COS PREDICTION. COS cryptocurrency
- Bitcoin Bull Run Is Only Just Starting, According To This Metric
- EUR RUB PREDICTION
- LUNC PREDICTION. LUNC cryptocurrency
- CRE PREDICTION. CRE cryptocurrency
- VC Firm Andreessen Horowitz Delves into Crypto Tech Research, Unveils New Tools to Bolster Zero-Knowledge Proofs