After adding 9,000 BTC last quarter, MicroStrategy now holds Bitcoin worth $7 billion. On September 30, the company held 114,042 at an average Bitcoin buying price of just under $28,000, CoinTelegraph reported.
MicroStrategy provides mobile app and business intelligence software and cloud-based solutions. Their main revenue comes from subscription services and product licensing.
BTC holdings up 200% y/y
The software corporation has increased its Bitcoin holdings by 198% y/y. The total of 114,042 BTC on September 30 came to an overall spend of $3.16 billion. On paper, they posted a carrying value of $2.406 billion for the holdings. The loss since the purchase is $754.7 million, but this is only on paper.
Since MicroStrategy classifies Bitcoin as an “intangible asset,” it is required by accounting rules to report an impairment loss when the carrying value becomes less than the cost basis. The company does not have to report any paper gains on the asset pending sale profit.
If they sold their holdings today, their profit would amount to almost $3.75 billion assuming a BTC price of around $60,600. When announcing the most recent acquisition, CEO Michael Saylor hinted at further BTC accumulation in the future:
Today, MicroStrategy is the world’s largest publicly traded corporate owner of Bitcoin with over 114,000 Bitcoins. We will continue to evaluate opportunities to raise additional capital to execute on our Bitcoin strategy.
The company’s reported revenue for the third quarter of 2021 was $128 million in total. This is up 0.5% compared to their Q3 results from 2020 and an improvement of 0.39% from the Zacks Consensus Estimate by Zacks Investment Research. The research company said:
This quarterly report represents an earnings surprise of 66.07%. A quarter ago, it was expected that this business software company would post earnings of $0.73 per share when it actually produced earnings of $1.72, delivering a surprise of 135.62%.
In the report, Michael Saylor drew attention to the fact that growing adoption of MicroStrategy’s cloud-based solutions and “overall demand” for the company’s platform were behind their strong performance in Q3.
MicroStrategy posted a gross profit of $105.7 million for Q3. This number was about the same as the year before. However, net loss was considerably higher this year: $36.1 million for the quarter compared to $14.2 million in the third quarter of 2020. Per share, the loss comes to $3.61 compared to $1.48 per share in Q3 2020.
