MicroStrategy added nearly 9,000 bitcoins last quarter, and its BTC reserves are now worth about $7 billion

MicroStrategy added nearly 9,000 bitcoins in the third quarter, bringing its total BTC holdings to a valuation of around $7 billion.

The company highlighted the purchase of 8,957 BTC in its third-quarter report on Oct. 28, and the company’s CEO, Michael Saylor, said that more BTC will accumulate in the future:

“Today, MicroStrategy is the world’s most bitcoin-held public company, with over 114,000 bitcoins. We continue to evaluate opportunities to raise additional capital to execute our bitcoin strategy.”

The software company’s Bitcoin holdings have increased by 198% since the same period last year. As of September 30, it held a total of 114,042 Bitcoins. .

On paper, Microstrategy posted a book value of $2.406 billion for its BTC holdings, with an impairment loss of $754.7 million since the purchase, but this is a paper loss.

Because the company classifies bitcoin as an "intangible asset," accounting rules dictate that it must report an impairment loss when the book value falls below its cost basis. However, the company is not required to report any book gain on the asset until it realizes a profit through the sale.

As of this writing, the price of bitcoin is around $60,600, and MicroStrategy's bitcoin holdings are worth around $6.9 billion, meaning the company would have made a profit of nearly $3.75 billion if it sold the bitcoins now.

MicroStrategy provides business intelligence software, mobile application software, and cloud-based solutions. The company also generates revenue through product licensing and subscription services.

The company reported total revenue of $128 million for the quarter, beating the Zacks Consensus Estimates by 0.39% and up 0.5% compared to its third-quarter 2020 results.

While Micostrategy's revenue was only slightly ahead of estimates, the company reported EPS of $1.86, beating forecasts of $1.12. The investment research firm highlighted yesterday that MicroStrategy has beaten the Zacks Consensus Estimates three times "over the past four quarters."

According to Zacks Investment Research: "Reported earnings for the quarter beat forecasts by a surprising 66.07%. A quarter ago, the business software company was expected to post earnings of $0.73 per share, but it actually reported earnings of $0.73 per share. $1.72, an astonishing 135.62% increase.”

In the report, Saylor highlighted "overall demand" for the MicroStrategy platform and continued adoption of the company's cloud solutions as reasons for the company's strong third quarter performance.

The company's gross profit for the quarter was $105.7 million, flat from a year earlier. Net loss for the quarter was $36.1 million ($3.61 per share), compared to a net loss of $14.2 million ($1.48 per share) in the third quarter of 2020.

Earlier today, Saylor reiterated his bullishness on digital gold when he retweeted his October 2020 post disclosing his personal BTC holdings (17,732), saying, "You don't sell your bitcoin" .

You don't sell your bitcoins.

— Michael Saylor ⚡️ (@saylor) October 28, 2021

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