MicroStrategy, a top figure in business intelligence, has revealed its third quarter of 2023 financial outcomes. As of October 31, the company owns a sizable collection of Bitcoin, totaling 158,400, purchased at an overall cost of $4.69 billion. That averages to about $29,586 for each Bitcoin.
Also, the company has been earnestly growing its cryptocurrency collection, adding 6,067 Bitcoins after the end of the second quarter at an average price of $27,531 per Bitcoin.
In October, @MicroStrategy acquired an additional 155 BTC for $5.3 million and now holds 158,400 BTC. Please join us at 5pm ET as we discuss our Q3 2023 financial results and answer questions about the outlook for #BusinessIntelligence and #Bitcoin. $MSTR https://t.co/w7eRUcGobi
— Michael Saylor⚡️ (@saylor) November 1, 2023
Phong Le, the CEO of MicroStrategy, voiced a strong belief in the firm’s strength. He highlighted the blend of their AI software in the last quarter and their strong profits.
Andrew Kang, MicroStrategy’s Chief Financial Officer, underscored the company’s steadfast dedication to growing their Bitcoin assets. He pointed to the possibility of adoption by larger institutions. Kang stated:
And while we continue to grow our strong balance sheet, our Q3 operating results and growth in total revenues reflect the resiliency of our software business and establish a solid foundation to capitalize on AI in BI.
Bitcoin Valuation in Q3 Performance
MicroStrategy’s Q3 results showed a rise in total revenues to $129.5 million, which was 3.3% more than 2022’s same term. The growth came from the surge in cloud services and robust earnings from product license revenues. Revenues from product licenses and subscription services jumped a significant 16.3%, and income from product support also went up by a small 1.3%. On the flip side, earnings from other services dropped by a hefty 14.9%.
According to a recent press release, the total earnings for the third quarter of 2023 hit $102.8 million, showcasing a 79.4% gross profit margin. This included operating costs having a significant 36.3% increase, particularly due to losses involving digital resources.
MicroStrategy disclosed a loss of $25.2 million from operations and a net loss of $143.4 million in Q3 2023. Primary contributors to these losses were digital asset impairment losses. Other factors include valuation allowance alterations in regard to the company’s deferred tax asset for their Bitcoin assets.
The firm had $45.0 million in cash and equivalents as of September 30. The digital assets it held, mostly around 158,245 Bitcoins, were valued at a significant $2.451 billion.
In August, MicroStrategy started a Sales Agreement. This agreement lets them issue and sell their class A common stock shares. Around $602.1 million of these shares are still up for issuance and sale.
RephraseBut, MicroStrategy continues to look at Bitcoin holdings. They also want to make their enterprise analytics software business bigger. This is part of their ‘Intelligence Everywhere’ vision.
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