MicroStrategy had 114,042 BTC as of September 30, at an average buying price of $27.713.
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MicroStrategy added almost 9,000 Bitcoin (BTC) to its holdings in Q3, bringing its total BTC stash to a valuation of around $7 billion.
In its Q3 report, the company mentioned the purchase of 8,957 BTC on Wednesday. The firm’s permabull CEO Michael Saylor stated that more BTC accumulation is possible:
MicroStrategy, the largest publicly traded Bitcoin corporate owner with more than 114,000 Bitcoins, is today “Today MicroStrategy.” We will continue to look at opportunities to raise capital to implement our Bitcoin strategy.
Software firm increased its Bitcoin holdings by 198% over the same period last years. As of September 30, total was 114,042 BTC. The average buying price for Bitcoin is $27,713 per coin or $3.16 billion.
MicroStrategy’s BTC holdings had a carrying value at $2.406 billion. However, this is only a paper loss.
Accounting rules require that the firm report impairment losses when Bitcoin’s carrying value drops below its cost basis, as Bitcoin is an “intangible asset”. The firm is not required by accounting rules to report paper gains on the asset unless a profit is made through a sale.
BTC’s price is at $60,600 as of the writing date. This means that MicroStrategy’s holdings are worth approximately $6.9 Billion, which suggests that MicroStrategy would make almost $3.75 Billion in profit if it were to be sold today.
MicroStrategy provides business intelligence software, mobile app software and cloud-based solutions, and the firm pulls in revenue via streams such as product licensing and subscription services.
The firm reported $128 million worth of total revenue for the quarter, beating the Zacks Consensus Estimate by 0.39% and marking a 0.5% increase compared to MicroStrategy’s Q3 results from 2020.
While MicroStrategy’s revenue squeaked past estimates, the firm posted earnings of $1.86 per share compared to the forecast of $1.12 per share. The investment research firm highlighted on Thursday that MicroStrategy has surpassed consensus estimates three times “over the last four quarters.”
“This quarterly report represents an earnings surprise of 66.07%. A quarter ago, it was expected that this business software company would post earnings of $0.73 per share when it actually produced earnings of $1.72, delivering a surprise of 135.62%,” said Zacks Investment Research.
Saylor highlighted in the report that “overall demand” for the MicroStrategy platform and growing adoption of the firm’s cloud-based solutions contributed to the firm’s strong performance in Q3.
Related: MicroStrategy’s Bitcoin treasury exceeds cash held by 80% of S&P 500 non-financial companies
The firm posted a gross profit of $105.7 million for the quarter, with the figure tallying in the same as the year before. Net loss for the quarter was $36.1 million, or $3.61 per share, compared to the loss of $14.2 million, or $1.48 per share, in Q3 2020.
Earlier today, Saylor reiterated his bullishness for digital gold by stating, “You do not sell your Bitcoin” as he retweeted his own post from October 2020 revealing personal holdings of 17,732 BTC.
