Business intelligence firm, MicroStrategy, has made a paper gain of $900 million on its stack of 158,400 Bitcoin, as optimism grows regarding the potential approval of spot Bitcoin exchange-traded funds (ETFs).
According to MicroStrategy’s November 1 results filing, the company, founded by Michael Saylor, added 6,067 Bitcoin to its portfolio since the third quarter, including another 155 in October. This brings their total Bitcoin holdings to 158,400 BTC.
CEO Phong Le has expressed the firm’s commitment to its Bitcoin strategy, stating that “Our commitment to acquire and hold bitcoin remains strong, especially with the promising backdrop of potential increased institutional adoption.”
While MicroStrategy’s revenue increased by 3% year-on-year to $129.5 million over the quarter, the firm still recorded a net loss of $143.4 million. The net losses were attributed to digital asset impairment losses and income taxes, amounting to $33.6 million and $109.6 million respectively.
Despite the net loss, MicroStrategy took advantage of a downward period in Bitcoin’s price during the third quarter, buying the additional 6,067 BTC for an average price of $27,590. This has contributed significantly to their paper gain of $900 million.
MicroStrategy is not only optimistic about its Bitcoin holdings but also confident in the performance of its artificial intelligence-integrated business analytics products. The company has seen a 16% increase in software licenses and a 28% increase in subscription services year-over-year.
MicroStrategy’s stock price (MSTR) has already shown a positive response to the news, increasing by 2.7% in after-hours trading to reach $438, according to Google Finance.
With the potential approval of spot Bitcoin ETFs on the horizon, MicroStrategy’s gains from its Bitcoin holdings may continue to grow. The firm believes it is well-positioned to capitalize on both the increasing popularity of Bitcoin and the growth of its business intelligence business.
Overall, despite the net loss recorded in the third quarter, MicroStrategy remains confident in its Bitcoin strategy and optimistic about the future of both its cryptocurrency holdings and its business analytics products.