MicroStrategy bought more bitcoin in October as asset gained value

Companies • November 1, 2023, 4:58PM EDT

Published 1 minute earlier on

Quick Take

MicroStrategy purchased an additional 155 bitcoin for $5.3 million in October.
Bitcoin’s price nearly hit $35,000 during the month.

MicroStrategy Chairman and founder Michael Saylor said the company nabbed another 155 bitcoin for $5.3 million in October, a month marked by a surge in price for the most popular of cryptocurrencies.

Saylor also said in a post to X, where he also teased the company's release of its third-quarter earnings, that MicroStrategy now holds 158,400 bitcoin. A little more than a month ago, the company stated in a filing it had purchased 5,445 bitcoins for $147.3 million — at an average price of $27,053 per bitcoin — between Aug. 1 and Sept. 24.

That set MicroStrategy up for some quick gains on its recently purchased bitcoin as the price for the digital asset soared in October, nearly hitting $35,000 at one point. Bitcoin is currently hovering just below that mark amid excitement that spot bitcoin ETFs might soon gain the necessary approval required before investors can pour money into the new financial instrument.

"Our commitment to acquire and hold bitcoin remains strong, especially with the promising backdrop of potential increased institutional adoption," Andrew Kang, chief financial officer at MicroStrategy, said in the company's earning statement.

MicroStategy grows revenue but posts loss

In the company's earnings report it said, since the end of the second quarter, it had added 6,067 bitcoins for $167 million at $27,531 per bitcoin.

But while third-quarter revenues increased 3.3% to $130 million, MicroStrategy posted a net loss of $143.4 million during the period. That tally was significantly worse than last year's results when the company said it had a net loss of $27 million in the third quarter.

"Provision for income taxes of $109.6 million and $24.0 million for the third quarter of 2023 and 2022, respectively, were reflected in net loss, principally reflecting changes in the valuation allowance on the Company’s deferred tax asset related to the impairment on its bitcoin holdings," the company said.

The company's share price remained relatively unchanged after the release, according to TradingView.

"Our commitment to acquire and hold bitcoin remains strong, especially with the promising backdrop of potential increased institutional adoption," the company added.

About Author

RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master's degree in Digital Sociology.