MicroStrategy Increases Bitcoin Holdings with $5.3 Million Purchase in October

As Bitcoin's Price Experienced Notable Gains in October, MicroStrategy Bolsters Its Crypto Holdings with a $5.3 Million Investment in the Digital Asset.

MicroStrategy Increases Bitcoin Holdings with $5.3 Million Purchase in October

Michael Saylor, the Chairman and Founder of MicroStrategy, revealed that the company had acquired an additional 155 bitcoins in October, spending approximately $5.3 million on this purchase. This strategic move took place during a month characterized by a significant increase in the value of Bitcoin, the world's most popular cryptocurrency.

In the same announcement posted on X, Saylor noted that MicroStrategy's total Bitcoin holdings now stand at 158,400 bitcoins.

Just a little over a month ago, the company disclosed that it had bought 5,445 bitcoins for $147.3 million. This acquisition took place between August 1 and September 24 at an average price of approximately $27,053 per bitcoin.

MicroStrategy's timely investments in Bitcoin have positioned the company to benefit from the digital asset's impressive price surge during October. At one point, the value of Bitcoin almost reached $35,000. Currently, Bitcoin is trading just below this mark as anticipation builds regarding the potential approval of spot Bitcoin exchange-traded funds (ETFs), which could usher in a new era of investment in this financial instrument.

MicroStrategy's Chief Financial Officer, Andrew Kang, reiterated the company's strong commitment to acquiring and holding Bitcoin. Kang emphasized the favorable context for increased institutional adoption, which has further solidified the company's resolve to invest in the cryptocurrency.

While MicroStrategy's third-quarter earnings showed a 3.3% increase in revenue to $130 million, the company also reported a net loss of $143.4 million during the same period. This loss was notably larger than last year's third-quarter net loss of $27 million.

MicroStrategy attributed the significant provision for income taxes in the third quarter of 2023, which amounted to $109.6 million, to changes in the valuation allowance related to the company's deferred tax asset. This adjustment was made in connection with the impairment on MicroStrategy's Bitcoin holdings.

Following the release of this news, the company's share price experienced relatively minor fluctuations, as indicated by TradingView. The market's response indicates a level of stability and continuity in MicroStrategy's operations and investments in the crypto space.