MicroStrategy Bolsters Bitcoin Holdings, Adds 6,067 BTC in Q3 2023
MicroStrategy, the pioneering Bitcoin investor, announced the acquisition of another substantial batch of the digital asset in its Q3 2023 earnings report on November 1st. The company, helmed by Michael Saylor, has been a trailblazer in the corporate world’s adoption of cryptocurrencies and has continued to amass Bitcoin as a cornerstone of its corporate strategy.
With this latest purchase, MicroStrategy now boasts a staggering total of 158,400 Bitcoins in its treasury, adding 6,067 Bitcoins to its holdings since the conclusion of the second quarter. Andrew Kang, Chief Financial Officer (CFO) at MicroStrategy, expressed the company’s dedication to its cryptocurrency endeavors, emphasizing the promising landscape of potential increased institutional adoption.
MicroStrategy’s Q3 report provides valuable insights into the company’s Bitcoin holdings and their accounting practices. As of September 30, the total market value of their Bitcoin holdings stood at an impressive $4.277 billion. In contrast, the original cost basis or purchase price was recorded at $4.681 billion. However, it is crucial to note that the carrying value, reflecting cumulative impairment losses, was significantly lower, at $2.5451 billion, underscoring the company’s long-term perspective on its Bitcoin investments.
The latest Bitcoin acquisition by MicroStrategy, which amounts to 6,067 BTC, was valued at $167 million in total, or approximately $27,531 per coin. MicroStrategy’s executive chairman, Michael Saylor, further highlighted the company’s continuous accumulation of Bitcoin, disclosing that they added an additional 155 BTC in October, with a valuation of $5.3 million.
What sets MicroStrategy apart from many other corporate entities is its steadfast belief in the potential of Bitcoin as a long-term store of value. Saylor has been a vocal advocate for Bitcoin as a hedge against inflation and a superior investment in comparison to traditional assets. He often provides data to support his assertions, and in late October, he presented a chart demonstrating the impressive performance of Bitcoin in the year-to-date comparison.
According to Saylor’s data, Bitcoin had gained a remarkable 103% in value in 2023, highlighting its outperformance over other high-profile investments. In contrast, the Nasdaq 100 had experienced a 30% gain, and gold saw a more modest 9.7% increase. This data is a powerful testament to Bitcoin’s resilience and appeal as a financial asset, which MicroStrategy is evidently keen to capitalize on.
MicroStrategy’s foray into Bitcoin dates back to 2020 when the company first initiated its investment journey into the world of cryptocurrencies. Since then, MicroStrategy has steadily increased its dedication to crypto investment, becoming a pioneering figure in the corporate adoption of digital assets. The company has evolved its strategy to encompass Bitcoin investment and business analytics software as its two primary corporate initiatives, illustrating its commitment to harnessing the power of blockchain technology and digital currencies in the modern financial landscape.
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