7 Billion Dollars Added to Microstrategy’s Stash Last Quarter
- Total BTC stash to a valuation of around $7 billion.
- The software firm has increased its Bitcoin holdings by 198% since last year.
- BTC is priced at roughly $60,600 at the time of writing.
MicroStrategy increased its Bitcoin (BTC) investments by about 9,000 units in the third quarter, bringing the total Bitcoin (BTC) assets to a worth of around $7 billion.
Its quarterly report on Wednesday emphasised the acquisition of 8,957 Bitcoin (BTC), with the business’s perma-bull CEO, Michael Saylor, adding that the company expects to accumulate much more BTC in the future:
Currently, MicroStrategy is the world’s largest publicly listed business owner of Bitcoin, with more than 114,000 Bitcoins in its possession.” We will continue to look for possibilities to obtain additional funds to carry out our Bitcoin strategy,” said the company.
The software company has expanded its Bitcoin holdings by 198 per cent since the same timeframe last year, and since Sept. 30, the total stood at 114,042 BTC, with an approximate annual purchase price of $27,713 per coin, for a total expenditure of $3.16 billion, according to CoinMarketCap.com.
According to MicroStrategy’s financial statements, the company has a carrying value of $2.406 billion for its Bitcoin assets and has suffered an impairment loss of $754.7 million since the transaction; nevertheless, this is purely paper loss.
Because Bitcoin is classified as an “intangible asset” by the company, accounting regulations require it to record an impairment loss whenever the asset’s carrying value falls more petite than its present value. Therefore, until a profit is realised through the sale of the property, the company is not obligated to declare any paper profits on the asset to the IRS.
Because Bitcoin is now trading at about $60,600 at the time of writing, the value of MicroStrategy’s holdings is approximately $6.9 billion, implying that the company would gain roughly $3.75 billion in revenue if it sold its holdings now.
MicroStrategy is a provider of business intelligence tools, mobile application software, and cloud-based solutions. The company generates income through a variety of channels, including product licensing and subscription services.
The company reported a net profit of $105.7 million for the third quarter, the same number as the previous year. The company’s net loss for the period was $36.1 million, or $3.61 per share, compared to $14.2 million, or $1.48 per share, in the same period in the previous fiscal year.
When asked about his Bitcoin holding, Saylor responded with the phrase “You do not sell your Bitcoin,” which he tweeted from an October 2020 tweet indicating personal holdings of 17,732 BTC. Saylor has maintained his bullish sentiment for digital gold throughout the year.
The post has appeared first on thenewscrypto.com
Read more: https://thenewscrypto.com/7-billion-dollars-added-to-microstrategys-stash-last-quarter/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
