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Microstrategy’s Bitcoin Investment Grows Amid Q3 Financial Revelations

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Microstrategy’s third-quarter performance in 2023 revealed a revenue increase of 3.3%, amounting to $129.5 million. However, this growth was shadowed by a substantial impairment loss of $33.6 million due to the company’s Bitcoin investments. Michael Saylor, the founder of Microstrategy, disclosed a recent purchase of 155 additional Bitcoins in October, pushing the company’s total holdings to 158,400 BTC.

In their recent Q3 2023 Earnings Presentation, the business intelligence software company highlighted their ongoing commitment to Bitcoin, having acquired approximately 158,400 digital coins as a part of their broader cryptocurrency strategy.

Q3 also marked the debut of Microstrategy’s AI software, harnessing Microsoft Azure Openai’s capabilities. Financially, the quarter witnessed growth in core revenues, with software licenses generating $45 million (a 16% increase) and subscription services producing $21 million (up by 28%).

However, the firm recorded a net loss of $143.4 million in Q3, primarily attributed to the devaluing Bitcoin during the crypto bear market. Yet, their assertive acquisition approach since August 2020 has positioned Microstrategy as the most significant public corporate holder of Bitcoin. By the end of Q3 2023, their Bitcoin holdings stood at 158,245, bought at an average price of $29,582 per coin, which increased slightly after adding another 155 BTC post-Q3.

Microstrategy’s CFO, Andrew Kang, emphasized the company’s unwavering commitment to Bitcoin, stating their goal to further increase holdings, given the encouraging signs of more significant institutional adoption.

This Q3 report coincides with the heightened anticipation in the financial sector regarding the possible authorization of a Bitcoin ETF. Giants like Blackrock, Fidelity, Valkyrie, and Vaneck have already lodged their applications with the U.S. Securities and Exchange Commission, awaiting the green signal.

Jay Solano

Jay Solano

Jay is a crypto and NFT enthusiast dedicated to exploring the dynamic world of digital assets. As a crypto blog writer, he is sharing his knowledge of the latest trends, breakthroughs, and investment opportunities in the blockchain world.

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