“In a bold move that highlights their confidence in the digital currency’s future, MicroStrategy seized the opportunity as Bitcoin’s value soared in October, further bolstering their already impressive holdings.”
MicroStrategy, the business analytics firm, has revealed that it acquired an additional 155 bitcoins for $5.3 million in October. This comes as the price of bitcoin surged during the same period. The company now holds a total of 158,400 bitcoins, as stated by MicroStrategy Chairman and founder Michael Saylor in a recent post.
In September, MicroStrategy had announced the purchase of 5,445 bitcoins for $147.3 million, setting the stage for significant gains as the price of bitcoin skyrocketed in October, reaching nearly $35,000 at one point. The company remains committed to acquiring and holding bitcoin, especially with the potential for increased institutional adoption.
However, despite the positive news regarding its bitcoin holdings, MicroStrategy reported a net loss of $143.4 million in its third-quarter earnings report. This is a significant decline compared to last year when the company reported a net loss of $27 million during the same period. The loss was primarily attributed to changes in the valuation allowance on the company’s deferred tax asset related to the impairment on its bitcoin holdings.
Despite the loss, MicroStrategy’s revenue for the third quarter increased by 3.3% to $130 million. The company remains determined to continue acquiring and holding bitcoin, citing the promising backdrop of potential increased institutional adoption.
It is worth noting that the information provided in this article is for informational purposes only and should not be considered as legal, tax, investment, financial, or other advice.