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MicroStrategy Added 9,000 BTC and Says It Will Keep Buying

  • The company increased its third-quarter holdings by 9,000 Bitcoins.
  • The accumulation of the cryptocurrency places MicroStrategy among the largest holders of Bitcoin globally.

Business intelligence software company MicroStrategy (Nasdaq: MSTR) announced the acquisition of nearly 9,000 Bitcoins to its crypto capital during the third quarter, bringing its total holdings to 114,042.

MicroStrategy, one of the largest investors in Bitcoin in the world, reported that the purchase of the cryptocurrency was made by “successfully raising capital in the quarter through our offering of shares in the market.”

The American company, which boasts a total market capitalization of about $7.4 billion, currently has around $7 billion in Bitcoins. Its book value of Bitcoin was $2.406 billion.

This figure reflects the impairment losses of $754.7 million that it has been carrying. When it comes to digital assets, companies are required by law to report an impairment when the price of the asset falls below the purchase price of the company.

MicroStrategy CEO Michael Saylor sees crypto as a “great” long-term investment that will benefit investors. Reporting on the company’s earnings, Saylor said there are no plans to sell Bitcoins but to buy.

The company hopes to continue “evaluating opportunities to raise additional capital to execute our Bitcoin strategy.” As such, the company is open to any partnership that allows it to continue acquiring more BTC.

In his remarks, Saylor expressed that in the last three months, the developments of the cryptocurrency have been “extremely dramatic.” He further argued that institutional adoption and recent regulatory discussions have strengthened Bitcoin.

Saylor pointed out that BTC-linked futures ETFs are another “check box” that should be analyzed by institutional investors. And he added that there is a “profound game-changing dynamic here with big tech and Bitcoin.”

In its third quarter earnings report, MicroStrategy reported adjusted earnings per share (EPS) of $1.86 on overall revenue of $128.0 million. The company beat analysts’ expectations for adjusted EPS of $0.64, with an estimated revenue of $127.5 million, according to FactSet.

On The Flipside

  • On Thursday, MicroStrategy shares closed up 1.3% post-trade at about $727.

Why You Should Care?

  • Analysts believe that the price of BTC should break above $62,250 soon.

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