MicroStrategy’s Bitcoin Holdings Surge to $900 Million as BTC Value Rises

Jimmy Aki
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MicroStrategy has acquired an additional 155 bitcoins for $5.3 million, bringing its portfolio of 158,400 BTC to a remarkable paper gain of $900 million. This purchase of crypto assets further reinforces the company’s strong belief in the potential of the digital realm, especially in light of the substantial growth in Bitcoin’s market value.

Market Dynamics and Future Prospects of MicroStrategy Q3 Financial Results

On November 1, MicroStrategy’s chairman and founder, Michael Saylor, announced quarter three (Q3) financial results, which entailed an addition of 6,067 BTC, including another 115 in October.

According to the detailed Q3 financial report, the BI platform has the biggest corporate BTC portfolio of 158,400 tokens, worth $4.69 billion as of October 31.

Other report metrics include total revenue of $129.5 million, software license revenues of $45 million, and subscription services revenue of $21 million.

All revenues recorded growth of 35, 16%, and 28%, respectively. However, this wasn’t enough, as the platform reported a net loss of $143.4 million.

Since its initial $250 million BTC investment on August 11, 2020, MicroStrategy has shown an impressive commitment to the asset’s potential and remains unswayed by the nature of the cryptocurrency markets.

While BTC fell short of 11.5% from $30,480 to $26,970 during the Q3 (July 1 – September 30, 2023), MicroStrategy acted on the asset downtrend and bought 6,067 for an average price of $27,590.

The assertive investment comes at a pivotal time for Bitcoin, as it nears the much-anticipated fourth halving, which can potentially affect the digital asset valuation.

Furthermore, BTC has recorded a price surge as the financial community awaits the US Securities and Exchange Commission (SEC) verdict on the first spot Bitcoin exchange-traded funds (ETFs).

Microstrategy
Source: CoinMarketCap

According to the CoinMarketCap BTC market, over 26% growth has been recorded in the last 30 days due to the heated arena for spot BTC ETFs.

Top asset management firms, including VanEck, Bitwise Asset Management, ARK Investment, and 21Shares, recently submitted applications to the SEC to launch and trade spot BTC ETFs.

With the SEC verdict pending, experts believe the price of BTC will continue to scale and hit a moonshot amidst a potential green light from the US regulator, with MicroStrategy being one of the biggest benefactors.

Already, the BI company has reaped great rewards in annual revenue due to its impressive digital asset portfolio.

MicroStrategy views BTC as a long-term store of value, hence why the asset treasury was created as a “reserve” strategy. This strategy has not only proven substantial in value but also mirrors a broader trend of corporate adoption and investment in digital assets.

MSTR Stock Price Hovers at $438 Per Share

The release of MicroStrategy’s Q3 financial results has impacted the performance of its stock (MSTR) market price.

Microstrategy
Source: Tradingview

According to Tradingview market data, MSTR shot 2.7% hours after the announcement and traded at $438 from its previous $421 hallmark. At press time, the asset trades at $438.80.

With the growth of BTC and a potential SEC’s approval of spot BTC ETFs, MicroStrategy asset holdings will surge and could drive the price of MSTR to record new all-time highs.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.