MicroStrategy, a prominent player in the business intelligence industry, has revealed its financial results for the third quarter of 2023. As of Oct 31, the company holds an impressive 158,400 Bitcoins at a total cost of $4.69 billion, equating to $29,586 per BTC. Moreover, it has acquired an additional 6,067 Bitcoins since the end of the second quarter, spending $167.0 million, which averages out to $27,531 per BTC.
Bitcoin Holdings and Acquisition
Phong Le, President and Chief Executive Officer of MicroStrategy, expressed confidence in their position, highlighting their AI software integration in the third quarter and robust revenues.
Andrew Kang, Chief Financial Officer of MicroStrategy, emphasized the company’s commitment to increasing their bitcoin holdings and capitalizing on the potential for institutional adoption. He said:
And while we continue to grow our strong balance sheet, our Q3 operating results and growth in total revenues reflect the resiliency of our software business and establish a solid foundation to capitalize on AI in BI.
In Q3, the company reported total revenues of $129.5 million, marking a 3.3% increase compared to the same period in 2022. The growth was driven by cloud expansion and a robust performance in product license revenues. Product licenses and subscription services revenues saw a 16.3% increase, while product support revenues increased by 1.3%. However, other services revenues decreased by 14.9%.
As per the press statement, its gross profit for the third quarter of 2023 reached $102.8 million, with a gross margin of 79.4%. Operating expenses increased by 36.3%, including impairment losses on digital assets.
Meanwhile, MicroStrategy reported a loss from operations of $25.2 million and a net loss of $143.4 million for the third quarter of 2023. These losses were attributed to digital asset impairment losses and changes in the valuation allowance on the company’s deferred tax asset related to bitcoin holdings.
As of Sept 30, the company held cash and cash equivalents of $45.0 million. The carrying value of their digital assets, which consist of approximately 158,245 Bitcoins, was $2.451 billion.
Additionally, in August, the company entered into a Sales Agreement, which allows them to issue and sell shares of their class A common stock, with approximately $602.1 million still available for issuance and sale.
However, MicroStrategy continues to focus on its Bitcoin holdings and the growth of its enterprise analytics software business, promoting its vision of “Intelligence Everywhere.”
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