MicroStrategy Q3 2023: 158,400 Bitcoin Holdings at $29,586 per BTC

blockchain.news:

MicroStrategy Incorporated (Nasdaq: MSTR), a leading independent business intelligence company, disclosed its third quarter financial results for 2023 on November 1, revealing a continued focus on Bitcoin acquisition and AI integration in its offerings. The Q3 report highlighted an acquisition of 6,067 bitcoins at a total cost of $167.0 million, averaging $27,531 per bitcoin, bringing their total holdings to 158,400 bitcoins valued at $4.69 billion as of October 31, 2023. The report also indicated a year-over-year revenue increase of 3% amounting to $129.5 million, with significant growth in Software Licenses Revenues (up 16% to $45.0 million) and Subscription Services Revenues (up 28% to $21.0 million).

MicroStrategy's foray into artificial intelligence was showcased with the launch of its inaugural MicroStrategy AI software, leveraging Microsoft Azure OpenAI, marking a significant stride in the business intelligence industry which sees AI as a pivotal innovation driver. The release reflects a broader industry trend of integrating AI capabilities to provide enhanced analytics and business insights.

The firm's financial data also spotlighted a gross profit of $102.8 million with a gross margin of 79.4%, alongside an operational loss of $25.2 million largely attributed to digital asset impairment losses amounting to $33.6 million. The net loss for the quarter stood at $143.4 million or $10.09 per share on a diluted basis, starkly contrasted against Q3 2022’s net loss of $27.1 million or $2.39 per share. Tax provisions reflecting changes in valuation allowance on deferred tax assets related to bitcoin impairment significantly impacted the net loss figures.

MicroStrategy's balance sheet as of September 30, 2023, showed