Jamal Al-Farouq Microstrategy Boosts Bitcoin Portfolio; Aggregate Holdings Reach 158,400 BTC
In its latest financial disclosure for Q3 2023, Microstrategy announced a rise in total revenues by 3.3%, reaching $129.5 million. Despite this, the company experienced impairment losses amounting to $33.6 million due to its bitcoin investments. Michael Saylor, the company’s founder, disclosed that Microstrategy acquired an added 155 BTC in October, costing $5.3 million, raising the firm’s total bitcoin assets to 158,400 BTC.
Q3 Reveals Revenue Increase for Microstrategy Despite Bitcoin Depreciation
Microstrategy’s Q3 2023 Earnings Presentation, released this week, offers an exhaustive analysis of the firm’s financial situation. On Wednesday, the business intelligence software firm proclaimed it has so far procured about 158,400 bitcoins, consistent with its cryptocurrency investment approach.
In the third quarter, Microstrategy introduced its novel Microstrategy AI software, marking its maiden venture into integrating AI capabilities through Microsoft Azure Openai. The report highlighted growth in primary revenue channels, seeing software licenses revenue rise by 16% to $45 million and a 28% upsurge in subscription services revenue, reaching $21 million.
Nonetheless, the third quarter did present a net deficit of $143.4 million for Microstrategy, largely attributed to the depreciation in its bitcoin assets due to a bearish cryptocurrency market trend. Since initiating its aggressive bitcoin acquisition strategy on August 11, 2020, Microstrategy has established itself as the leading corporate bitcoin holder listed publicly.
As per the disclosure, Microstrategy bought 5,912 bitcoins in Q3 2023. The cumulative purchase for the quarter was 158,245 bitcoins, acquired for a total of $4.68 billion, averaging at $29,582 per bitcoin. Post Q3, the company added another 155 bitcoins, stating:
By October 31, 2023, our total holdings reached 158,400 bitcoins, with an overall expenditure of $4.69 billion, amounting to an average of $29,586 per bitcoin.
In light of the impairment losses thus far, Microstrategy continues to emphasize its dedication to its bitcoin investment strategy.
Andrew Kang, Microstrategy’s CFO, remarked on Wednesday, “We augmented our bitcoin assets to 158,400 bitcoins, adding 6,067 bitcoins post-Q2. We remain steadfast in our strategy to procure and retain bitcoin, especially considering the prospective rise in institutional adoption.”
The disclosure of Microstrategy’s Q3 financial results coincides with heightened interest and expectancy related to the potential approval of a direct bitcoin exchange-traded fund (ETF). Several prominent financial entities, including Blackrock, Fidelity, Valkyrie, and Vaneck, are in the queue, having presented their ETF proposals to the U.S. Securities and Exchange Commission (SEC) and are in eager anticipation of a positive response from the commission.
We invite readers to deliberate on Microstrategy’s recent purchase, which has augmented its bitcoin holdings to 158,400. Please present your insights and viewpoints on this matter below.
Table Of Contents
Frequently Asked Questions (FAQs) about fokus keyword: Microstrategy Q3 2023 Bitcoin Holdings
What was Microstrategy’s revenue in Q3 2023?
Microstrategy reported an increase in total revenues to $129.5 million in the third quarter of 2023.
How many bitcoins did Microstrategy purchase in October 2023?
In October 2023, Microstrategy purchased an additional 155 bitcoins.
What is Microstrategy’s total bitcoin holding as of the latest financial disclosure?
As of the latest financial disclosure, Microstrategy holds a total of 158,400 bitcoins.
What was the reported net loss for Microstrategy in Q3 2023?
Microstrategy reported a net loss of $143.4 million in Q3 2023.
Did Microstrategy’s software license and subscription services revenues increase in Q3 2023?
Yes, Microstrategy saw a 16% increase in software licenses revenue and a 28% growth in subscription services revenue in Q3 2023.
What is the average cost of Microstrategy’s bitcoin purchases?
The average cost of Microstrategy’s bitcoin purchases is approximately $29,586 per bitcoin.
Is Microstrategy planning to continue its bitcoin acquisition strategy?
Yes, Microstrategy has reaffirmed its commitment to continue its bitcoin acquisition strategy.
Which companies are awaiting SEC approval for a bitcoin ETF?
Companies such as Blackrock, Fidelity, Valkyrie, and Vaneck are awaiting SEC approval for a bitcoin ETF.
More about fokus keyword: Microstrategy Q3 2023 Bitcoin Holdings
- Microstrategy’s Financial Overview
- Bitcoin Market Analysis
- Cryptocurrency Investment Strategies
- Microstrategy’s Bitcoin Acquisition
- Artificial Intelligence in Business Intelligence
- Bitcoin ETFs and the SEC
- Corporate Cryptocurrency Holdings
7 comments
Didn’t expect a net loss like that, the impairment charge is a hit, but will it pay off in the long term for Microstrategy?
I’m just not sure how sustainable this is, the market is so volatile… can a company really base so much of their strategy on crypto
Interesting move to launch an AI software using Azure Openai in the same quarter, diversifying or distracting?
That’s a big bet from Microstrategy! hodl to the moon or sink with the ship eh?
Acquiring more bitcoin in this market? are they genius or just reckless, time will tell…
at these prices, Microstrategy’s average cost per bitcoin seems high, could this be a concern if the market doesn’t rebound quickly?
wow, Microstrategy really going all in on bitcoin? what’s their end game with such a massive stake.