Bitcoin hits best price of the year after MicroStrategy announces purchase of 6,036 BTC

Bitcoin hits best price of the year after MicroStrategy announces purchase of 6,036 BTC
Bitcoin hits best price of the year after MicroStrategy announces purchase of 6,036 BTC

Software company MicroStrategy announced that it has purchased an additional 6,067 Bitcoin for $167 million since the end of Q2 2023, bringing its total Bitcoin purchased to 158,400, at a total cost of $4.69 billion, or $29,586 per currency.

The company, which has been one of the most aggressive corporate buyers of Bitcoin, said it acquired the additional coins at an average price of $27,531.

This includes the acquisition of an additional 155 Bitcoin for $5.3 million in October, as revealed by MicroStrategy President Michael Saylor.

“Our commitment to acquiring and holding Bitcoin remains strong, especially against the backdrop of a potential increase in institutional adoption,” MicroStrategy Chief Financial Officer Andrew Kang said in a statement.

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

— Michael Saylor⚡️ (@saylor)

MicroStrategy’s purchase of Bitcoin comes amid a rally in the cryptocurrency market, which saw Bitcoin reach a record price for this year of US$35,919 on Wednesday night (1).

This Thursday morning (2), the main cryptocurrency was being traded at US$35,440 at the time of publication, an increase of 2.8% in the last 24 hours and an appreciation of 114% since the beginning of the year, according to data from CoinMarketCap.

MicroStrategy Net Losses Increase

In its third-quarter earnings report, MicroStrategy showed a 3.3% increase in revenue to $130 million. However, the company reported a net loss of $143.4 million, a figure substantially worse than its net loss of $27 million in the same period a year ago.

The company also recognized a $125.8 million impairment loss on its Bitcoin inventory during the quarter, as the market price of the flagship cryptocurrency was lower than its book value as of September 30, 2023.

“The income tax provision of US$109.6 million and US$24.0 million for the third quarter of 2023 and 2022, respectively, was reflected in the net loss, mainly reflecting changes in the valuation allowance on the tax asset deferred from the company related to the devaluation of its Bitcoin stock,” said the company.

MicroStrategy first purchased the cryptocurrency in August 2020 and currently holds approximately 0.75% of Bitcoin’s circulating supply, according to Bitcoin Treasuries.

MicroStrategy shares were trading around $426 at close on Wednesday, up 29% over the past month.

* Translated and edited with permission from Decrypt.

The article is in Portuguese

Tags: Bitcoin hits price year MicroStrategy announces purchase BTC



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