MicroStrategy, a business intelligence company, has gained $900 million on its 158,400 Bitcoin holdings, currently valued at $35,449 per BTC. This gain was driven by optimism regarding the potential approval of spot Bitcoin exchange-traded funds (ETFs).
According to MicroStrategy’s November 1 report, it has acquired an additional 6,067 BTC since the third quarter, including 155 more in October.
MicroStrategy CEO Phong Le said that the company is committed to its Bitcoin strategy for the foreseeable future.
“Our commitment to acquire and hold bitcoin remains strong, especially with the promising backdrop of potential increased institutional adoption,” Le said.
Former MicroStrategy CEO Michael Saylor shared the news in a social media post, saying, “In October, @MicroStrategy acquired an additional 155 BTC for $5.3 million and now holds 158,400 BTC. Please join us at 5pm ET as we discuss our Q3 2023 financial results and answer questions about the outlook for #BusinessIntelligence and #Bitcoin. $MSTR.”
MicroStrategy’s revenue rose by three percent year-on-year to $129.5 million for the quarter. Nevertheless, this increase was insufficient to prevent the company from incurring a net loss of $143.4 million.
During this downturn, MicroStrategy took advantage by purchasing 6,067 BTC at an average price of $27,590. MicroStrategy is also optimistic about the position of its AI-integrated business analytics products, as its software licenses and subscription services have increased by 16 percent and 28 percent year-over-year.
“We believe MicroStrategy is well situated to capitalize on both the tailwinds in bitcoin and growth in our BI business,” Le said.
MicroStrategy’s stock price (MSTR) has risen by 2.7 percent in after-hours trading to reach $438, as reported by Google Finance.
MicroStrategy stands as the publicly traded company with the largest Bitcoin holdings, far surpassing other notable investors like Marathon (which holds 13,286 BTC worth $470 million) and Tesla (with $218 million in Bitcoin).
As of September 30, MicroStrategy’s Bitcoin holdings had a total market value of $4.277 billion. The purchase price, or original cost basis, was $4.681 billion. The company also reported a carrying value of $2.5451 billion.
On October 27, Saylor pointed out that, in terms of year-to-date performance in 2023, Bitcoin had outperformed some other well-known investments. He shared a chart showing that Bitcoin had gained 103 percent during that time, whereas the Nasdaq 100 had gained 30 percent and gold had gained 9.7 percent.
MicroStrategy entered the Bitcoin market in 2020 and has since increased its commitment to cryptocurrency investments. It now considers Bitcoin investments and business analytics software as its two primary corporate strategies.
Additionally, MicroStrategy is actively involved in Bitcoin’s Lightning Network, having introduced an enterprise Lightning plugin in late 2022, which is now featured on its website.
Bitcoin is currently experiencing a struggle between the bulls trying to raise its value above $35,300 and the bears attempting to lower it. The Relative Strength Index (RSI), a tool used to measure the speed and change of price movements, is still in the overbought territory.
Analysts maintain that the Bitcoin price of $35,300 is a crucial level, signaling strong momentum. On the other hand, if it drops below the $33,500 support level, it could experience a decline toward the 20-day exponential moving average at $32,000.
If the bulls succeed and the price breaks through the resistance, it might extend the upward trend, possibly pushing Bitcoin’s value to $40,000. At the time of writing, Bitcoin is priced at $35,536.
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