MicroStrategy, a listed company whose main business is holding Bitcoin, announced its third quarter financial report. MicroStrategy once again increased its investment in Bitcoin. As of October 31, 2023, MicroStrategy held a total of 158,400 Bitcoins. Low unit cost to $29,586. Thanks to the recent surge in Bitcoin, the Bitcoin held by MicroStrategy has not only turned a loss into a profit, but its recent stock price performance has even outperformed Bitcoin.
MicroStrategy Buys Bitcoin on Dips Again
Since the end of Q2, 6,067 Bitcoins have been acquired for $167 million, at a unit cost of $27,531. As of October 31, 2023, the micro strategy held a total of 158,400 Bitcoins with a total cost of $4.69 billion, which once again lowered the unit cost to $29,586 (the unit cost at the end of July was $29,672).
Bitcoin digital asset impairment still significantly affects its financial report
Digital asset impairments continue to have a significant impact on MicroStrategy's operating expenses. For the three months ended September 30, 2023, digital asset impairment losses were $33.6 million, accounting for 26.2% of operating expenses.
Although after deducting the impairment of digital assets, its operating profit can be barely corrected, does this also mean that MicroStrategy's business intelligence business is not profitable? MicroStrategy reported third-quarter revenue of $129.5 million, up just 3% year over year.
MicroStrategy has not yet enabled FASB's new accounting rules
The U.S. Financial Accounting Standards Board (FASB) passed a new accounting rule in early September, allowing companies such as MicroStrategy that hold cryptocurrency to use fair value (Fair Value) to evaluate the value of Bitcoin in financial reports. However, it is observed that MicroStrategy Strategy’s financial report this time does not seem to have used this new rule.
However, in the briefing, MicroStrategy also compared the huge difference caused by using the existing book value (carrying value) and the Bitcoin market price evaluation. If assessed using market prices, MicroStrategy’s Bitcoin holdings at the end of October would have been worth $5.48 billion, well above the $2.46 billion book value.
(Shareholders feel more excited about the rise in Bitcoin! Benefitting from FASB’s new system, micro-strategy stock prices rise)
MicroStrategy’s recent stock price beats Bitcoin
Thanks to the recent surge in Bitcoin, the Bitcoin held by MicroStrategy has not only turned a profit, but its recent stock price performance has even outperformed Bitcoin. MicroStrategy's stock price has increased by 193% from the low of $140 at the beginning of this year. , while Bitcoin only rose 115% during the same period.
This article Micro-strategy adds more to buying Bitcoin, business intelligence does not make money, but the stock price beats Bitcoin first appeared on Chain News ABMedia.
