As of Sept. 30, MicroStrategy held 114,042 BTC at an average purchasing price of $27,713.
MicroStrategy value-added virtually 9,000 Bitcoin (BTC) to its holdings in Q3, transfer its total BTC stash to a valuation of around $7 billion.
The company highlighted the purchase of eight,957 BTC in its Q3 report on weekday, with the firm’s perma-bull CEO, Michael Saylor, stating that there's a lot of BTC accumulation to come:
“Today, MicroStrategy is the world’s largest publicly traded corporate owner of Bitcoin with over 114,000 Bitcoins. We will continue to evaluate opportunities to raise additional capital to execute on our Bitcoin strategy.”
The software package firm has redoubled its Bitcoin holdings by 198% since a similar amount last year, and as of Sept. 30, the entire stood at 114,042 BTC with an estimated average buying value of $27,713 per coin, or a complete pay of $3.16 billion.
On paper, MicroStrategy denote a carrying worth of $2.406 billion for its BTC holdings at an impairment loss of $754.7 million since the acquisition; but, this is often a paper loss.
As the firm categorizes Bitcoin as an “intangible asset,” accounting rules mandate that it should report an impairment loss once the carrying worth dips below its value basis. However, the firm isn't needed to report any paper gains on the quality till a profit is complete through a buying deal.
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 firm would build nearly $3.75 billion in profit if it sold these days.
MicroStrategy provides business intelligence software package, mobile app software package and cloud-based solutions, and also the firm pulls in revenue via streams like product licensing and subscription services.
The firm rumored $128 million value of total revenue for the quarter, beating the Zacks agreement 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 denote earnings of $1.86 per share compared to the forecast of $1.12 per share. The investment analysis firm highlighted on Thursday that MicroStrategy has surpassed agreement estimates 3 times “over the last four quarters.”
“This quarterly report represents associate degree earnings surprise of 66.07%. a quarter ago, it had been expected that this business software package company would post earnings of $0.73 per share once it really made earnings of $1.72, delivering a surprise of 135.62%,” same Zacks Investment analysis.
Saylor highlighted within the report that “overall demand” for the MicroStrategy platform and growing adoption of the firm’s cloud-based solutions contributed to the firm’s robust performance in Q3.
(Brian Quarmby, Cointelegraph, 2021)