MicroStrategy has seen the value of its Bitcoin portfolio rise considerably. The rise coincides with a period of optimism in the crypto market, not least due to speculation surrounding the approval of Bitcoin Spot ETFs.
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MicroStrategy, over $900M thanks to the Bitcoin boom
Michael Saylor, the founder of MicroStrategy has always been a fervent supporter of Bitcoin. Since the beginning of the third quarter, the company has acquired 6,067 bitcoins, bringing its total to 158,400 BTC.
This acquisition was boosted by the fall in the price of Bitcoin, which dropped from $30,480 to $26,970 between July and September. Taking advantage of this opportunity, MicroStrategy bought these Bitcoins at an average price of $27,590.
MicroStrategy CEO, Phong Le, remains optimistic about the company’s Bitcoin strategy.
Our commitment to acquiring and retaining Bitcoin remains strong, especially in the promising context of potential increased institutional adoption.Declaration of Phong Le
MicroStrategy’s financial health shows overall robustness
Beyond its investments in Bitcoin, MicroStrategy continues to focus on its core business. Although the company recorded a paper gain of $900 million, it also posted a net loss of $143.4 million last quarter.
These losses were attributed in part to the impairment of digital assets and income taxes, which accounted for $109.6 million of total net losses.
However, it is worth noting that the company was able to take advantage of the fall in Bitcoin prices in the third quarter to strengthen its position, purchasing the 6,067 BTC at an average price of $27,590.
On the other hand, the company has also experienced growth in its business analysis products integrated with artificial intelligence. Its software licenses and subscription services grew by 16% and 28% respectively year-on-year.
Following these announcements, MicroStrategy’s share price rose by 2.7%, to $438 in after-hours trading.
MicroStrategy, despite the financial challenges, remains resolutely committed to its Bitcoin strategy, while continuing to grow its core business. With the current dynamics of the crypto market and the positive outlook around the approval of a Spot ETF for Bitcoin, the company is already well positioned to benefit from the next bullish wave.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.