MicroStrategy added 9,000 bitcoins in the third quarter, bringing the total to $ 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. ”
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.
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