MicroStrategy, a major player in the global corporate sector, has acquired an additional 155 bitcoins for $5.3 million in October, as disclosed by former CEO Michael Saylor on social media. This latest acquisition brings the company's total bitcoin holdings to 158,400 coins, purchased at a total cost of $4.69 billion.
The business intelligence giant had previously procured 5,445 bitcoins for $147.3 million and another batch of 6,067 bitcoins for $167 million after the second quarter of 2023, all at an average expenditure of $29,568 per coin. Despite a significant net loss of $143.4 million in the third quarter of 2023, which includes a digital asset impairment loss of about $34 million, the company remains steadfast in its bitcoin strategy.
MicroStrategy's Chief Financial Officer Andrew Kang emphasized the potential for increased institutional adoption of the cryptocurrency. The firm's revenue for Q3 2023 rose over 3% to $129.5 million compared to Q3 2022 when the net loss was significantly lower at $27.1 million and the digital asset impairment loss was just $0.7 million.
According to Bitcoin Treasuries data, MicroStrategy's investment is currently valued at $4.8 billion, marking a 160% increase since its initial purchase in August 2020. Despite an impairment loss of $125.8 million on its Bitcoin assets and a provision for income taxes of $109.6 million due to changes in the valuation allowance on the company's deferred tax asset related to Bitcoin impairment, MicroStrategy remains committed to its Bitcoin strategy amidst a market rally that saw the cryptocurrency hit a record price for the year at $35,878.
The company's stock traded around $426 on Wednesday, reflecting a 29% increase over the past month.
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