MicroStrategy added 9,000 bitcoins in the third quarter, bringing the total to $ 7 billion

MicroStrategy added nearly 9,000 bitcoins to its reserves in the third quarter, bringing the total value of BTC holdings to around $ 7 billion.

The company highlighted the purchase of 8,957 BTC in report Q3 on October 28th with CEO Michael Saylor indicating more BTC will be accumulated:

“MicroStrategy is currently the world’s largest publicly traded Bitcoin holder with over 114,000 Bitcoins. We will continue to evaluate additional financing options to implement our Bitcoin strategy. ”

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The software company has increased its bitcoin holdings 198% year over year, totaling 114,042 BTC as of September 30, with an estimated median purchase price of $ 27,713 or total spend of $ 3.16 billion.

On paper, Microstrategy has a book value of $ 2.406 billion on its BTC holdings with a loss of $ 754.7 million since the acquisition, but that’s just a loss on paper.

If the company classifies Bitcoin as an “intangible asset,” accounting rules dictate that it must report a loss if its book value falls below its cost base. However, the company is not required to report paper gains on the assets until a profit is made after the sale.

With BTC valued at around $ 60,600 at press time, MicroStrategy has approximately $ 6.9 billion in holdings, suggesting the company could make nearly $ 3.75 billion in profit on an immediate sale. Dollars.

MicroStrategy provides business intelligence software, mobile app software, and cloud-based solutions, and the company generates revenue through flows such as subscriptions and licensing services.

MicroStrategy thông báo đã sở hữu tổng cộng 4,45 tỷ USD Bitcoin

The company reported total revenue of $ 128 million for the quarter, beating Zacks’ consensus estimate by 0.39% and up 0.5% from its third quarter 2020 results.

While Micostrategy sales fell short of previous estimates, the company posted earnings of $ 1.86 per share versus a forecast of $ 1.12 per share. The investment research firm pointed out yesterday that MicroStrategy has exceeded consensus estimates “in the last four quarters” three times.

“This quarterly report shows a surprise profit of 66.07%. Last quarter the company was expected to post earnings of $ 0.73 per share, but it actually turned in earnings of $ 1.72, which is a staggering 135.62%, “said Zacks Investment Research .

Saylor in the report highlighted that “overall demand” for the MicroStrategy platform and the company’s increased adoption of cloud-based solutions contributed to strong business performance in the third quarter.

The company posted gross profits of $ 105.7 million for the quarter. The net loss for the quarter was $ 36.1 million, or $ 3.61 per share, compared to a loss of $ 14.2 million, or $ 1.48 per share, for the third quarter of 2020.

Saylor reiterated his optimistic stance on digital gold earlier this morning when he stated that he was “not selling Bitcoin”.

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According to Cointelegraph

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