MicroStrategy Buys an Additional $5.3 Million in Bitcoin, Bitcoin Holdings Yield $900 Million in Profits
MicroStrategy is reaping $900 million in profits from its massive Bitcoin treasury thanks to the "Uptober" of the world's largest cryptocurrency.
MicroStrategy Buys an Additional $5.3 Million in Bitcoin, Bitcoin Holdings Yield $900 Million in Profits
In the early hours of November 2nd, CEO Michael Saylor of MicroStrategy reported in the Q3/2023 financial statement that the company spent $5.3 million in October 2023 to purchase an additional 155 BTC.
In October, @MicroStrategy acquired an additional 155 BTC for $5.3 million and now holds 158,400 BTC. Please join us at 5pm ET as we discuss our Q3 2023 financial results and answer questions about the outlook for #BusinessIntelligence and #Bitcoin. $MSTR https://t.co/w7eRUcGobi
— Michael Saylor⚡️ (@saylor) November 1, 2023
As a result, MicroStrategy's total Bitcoin holdings now stand at 158,400 BTC, with an average purchase price of approximately $29,586 per BTC, totaling an expenditure of $4.69 billion.
With Bitcoin prices reaching above $35,500 on November 2nd, the company's investment portfolio surged to $5.64 billion, yielding MicroStrategy a profit of over $900 million, equivalent to a 19.22% return.
1-day chart of BTC/USDT pair on Binance as of 08:50 AM on November 2, 2023
Looking back, when the cryptocurrency market hit its low point in December 2022, MicroStrategy faced a 45% loss on its Bitcoin investment. Nevertheless, the company remained steadfast, refusing to sell and even continuing to buy more throughout 2023: $150 million in March, $29.3 million in April, $347 million in June, $14.4 million in July, and $147 million in September – totaling $682 million.
Historical Bitcoin purchase statistics by MicroStrategy. Source: Saylor Tracker (11/02/2023)
CEO Saylor also shared a statistical table demonstrating that since MicroStrategy began investing in Bitcoin in August 2020, the company's MSTR stock price has risen by 242%, while Bitcoin itself has appreciated by 192% – outperforming other investment options such as U.S. stock indices, shares of large tech companies, or precious metals.
Consider a #Bitcoin Strategy. pic.twitter.com/tRgIEBVdRp
— Michael Saylor⚡️ (@saylor) November 1, 2023
MicroStrategy's CFO Andrew Kang stated:
“We remain committed to purchasing and holding Bitcoin, especially as this asset shows promise of adoption by large institutions.”
In October 2023, Bitcoin recorded a more than 28% increase to its highest price level since May 2022, triggered primarily by the proposal from several Wall Street giants to establish Bitcoin spot ETFs.
