As of Sept. 30, MicroStrategy held 114,042 BTC at an average purchasing price of $27,713.
MicroStrategy added nearly 9,000 Bitcoin (BTC) to its holdings in Q3, bringing its total BTC stash to a valuation of around $7 billion.
The company highlighted the acquisition of 8,957 BTC in its Q3 report on Wednesday, with the agency’s perma-bull CEO, Michael Saylor, stating that there’s more BTC accumulation to come:
“Today, MicroStrategy is the world’s largest publicly traded company owner of Bitcoin with over 114,000 Bitcoins. We will proceed to judge opportunities to lift further capital to execute on our Bitcoin technique.”
The software firm has elevated its Bitcoin holdings by 198% for the reason that identical interval last year, and as of Sept. 30, the whole stood at 114,042 BTC with an estimated common buying value of $27,713 per coin, or a complete spend of $3.16 billion.
On paper, MicroStrategy posted a carrying worth of $2.406 billion for its BTC holdings at an impairment loss of $754.7 million since the acquisition; nevertheless, it is a paper loss.
Because the firm categorizes Bitcoin as an “intangible asset,” accounting guidelines mandate that it should report an impairment loss when the carrying value dips under its price basis. Nevertheless, the agency isn’t required to report any paper gains on the asset till a profit is realized through a sale.
As BTC is priced at roughly $60,600 at the time of writing, the worth of MicroStrategy’s holdings equates to around $6.9 billion, suggesting that the agency would make almost $3.75 billion in revenue if it offered right now.
MicroStrategy offers business intelligence software, mobile app software and cloud-based solutions, and the agency pulls in income through streams such as product licensing and subscription services.
The agency reported $128 million worth of whole income for the quarter, beating the Zacks Consensus Estimate by 0.39% and marking a 0.5% improvement in comparison with MicroStrategy’s Q3 results from 2020.
Whereas MicroStrategy’s income squeaked previous estimates, the agency posted earnings of $1.86 per share compared to the forecast of $1.12 per share. The funding analysis agency highlighted on Thursday that MicroStrategy has surpassed consensus estimates 3 times “over the past 4 quarters.”
“This quarterly report represents an earnings surprise of 66.07%. A quarter ago, it was anticipated that this enterprise software company would submit earnings of $0.73 per share when it really produced earnings of $1.72, delivering a shock of 135.62%,” mentioned Zacks Funding Analysis.
Saylor highlighted in the report that “overall demand” for the MicroStrategy platform and rising adoption of the agency’s cloud-based options contributed to the agency’s sturdy performance in Q3.
The agency posted a gross profit of $105.7 million for the quarter, with the determine tallying in the same as the year before. Net loss for the quarter was $36.1 million, or $3.61 per share, in comparison with the lack of $14.2 million, or $1.48 per share, in Q3 2020.
Earlier today, Saylor reiterated his bullishness for digital gold by stating, “You don’t sell your Bitcoin” as he retweeted his personal submit from October 2020 revealing personal holdings of 17,732 BTC.
Source: Cointelegraph
