“Our recent decision to make bitcoin our primary treasury reserve asset is the latest example of MicroStrategy’s embrace of virtual technologies. The purchase of $425 million of bitcoin during the quarter offers the possibility of greater return potential for investors than holding such balances in cash and has increased the overall visibility of MicroStrategy in the market. We believe our proactive management of our balance sheet, together with our improved revenue and profitability performance, can serve as catalysts to generate substantial long-term value for our shareholders.”
MicroStrategy delivered one of its stronger quarters in years, with meaningful growth in both product licenses and deferred subscription services revenues and a significant improvement in non-GAAP operating margin.https://t.co/peKggpGIgt— Michael Saylor (@michael_saylor) October 27, 2020
MicroStrategy Up $100 Million on Bitcoin BetWhile bitcoin’s inherent volatility has been playing out since his company invested, Saylor is not complaining. MicroStrategy has already earned $100 million from its bitcoin investment since August when the company first made headlines for scooping up BTC, as pointed out by tech investor Kevin Rooke. Now the Virginia-based company owns more than 38,000 bitcoins after paying an average price of $11,111 each. The average carrying value for the company’s bitcoin was $9,954 in the quarter but with bitcoin trending well above $13,000, that value is on the rise.
Microstrategy has earned $78 million in the last 3.5 years from their business operations.— Kevin Rooke (@kerooke) October 27, 2020
Microstrategy has earned $100 million in the last 2 months from their Bitcoin purchases.
Investors Send MicroStrategy Stock SoaringSince MicroStrategy’s third-quarter earnings report came out, the stock has been rallying. Shares of MSTR are up more than 7% in after-hours trading. Since naming bitcoin its treasury reserve asset, MicroStrategy’s stock has ballooned by some 25%. Saylor expects that other “investors and enterprises” will come to realize bitcoin’s potential as a digital monetary network, saying that the “consequences will be profound.” MicroStrategy is not done with the leading cryptocurrency yet and will reportedly be directing any excess cash after working capital into bitcoin, even with the price barreling toward $14K.
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