As the halving approaches and the SEC prepares to rule on the Bitcoin ETF, MicroStrategy revealed its financial results for the third quarter of 2023, highlighting a particularly promising Bitcoin portfolio.
Third quarter success driven by Bitcoin
MicroStrategy has demonstrated remarkable confidence in the potential of Bitcoin. Since the end of the second quarter, acquired 6,067 bitcoins worth $167.0 million, representing an average cost of $27,531 per bitcoin.
As of October 31, 2023, the company held an impressive total of 158,400 bitcoins, acquired at a total cost of $4.69 billion. This works out to an average of $29,586 per bitcoin.
Andrew Kang, CFO of MicroStrategy, underlines the company’s strong desire to acquire and hold bitcoin, especially in a context where institutional adoption appears promising.
“Our desire to acquire and hold bitcoin remains strong, especially amid the promising backdrop of a potential increase in institutional adoption.”, did he declare.
Despite market fluctuations, the company remains confident in its Bitcoin strategy, viewing the queen of cryptos as a means to strengthen its balance sheet.
Microstrategy’s overall financial performance
Beyond its Bitcoin investment, how did MicroStrategy perform financially during this quarter? Total revenue for the third quarter of 2023 was $129.5 million, up 3% from the previous year.
Software licensing revenue increased 16% to $45.0 million, while subscription services revenue climbed 28% to $21.0 million.
The company has also focused on innovation, with the launch of its inaugural MicroStrategy AI software, which is powered by Microsoft Azure OpenAI.
“ The business intelligence industry is leading innovation with the integration of AI capabilities, and MicroStrategy was first to market with its inaugural MicroStrategy AI software, released in the third quarter, which is powered by Microsoft Azure OpenAI.
We believe MicroStrategy is well positioned to take advantage of bitcoin headwinds and the growth of our BI business“said Phong Le, President and CEO of MicroStrategy.
However, it is worth noting that the company reported an operating loss of $25.2 million for this quarter, compared to operating income of $6.1 million for the third quarter of 2022. This loss is in part attributed to losses in value of their digital assets, which amounted to $33.6 million.
MicroStrategy continues to be bold in its BTC investment strategy, while strengthening its position in the Business Intelligence market. Although cryptocurrencies carry risks, the company seems confident that Bitcoin will play a key role in its financial future. Only time will tell if this bold strategy will bear fruit in the long term.
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