MicroStrategy disclosed in its third-quarter earnings report last week that it purchased 155 additional bitcoins in October. This brings the company’s total bitcoin acquisitions to 6,607 since the beginning of Q3 2022.
As of October 31, MicroStrategy owns 158,400 bitcoins acquired at a cost of $4.69 billion, or around $29,586 per bitcoin. The company took an impairment loss of $33.6 million on its bitcoin holdings in Q3, with total cumulative impairment losses now reaching $2.23 billion.
The average carrying value of MicroStrategy’s bitcoin is approximately $15,491 per coin. According to CoinMarketCap data, BTC hovers around $34,400 at press time.
MicroStrategy remains robust in its Bitcoin strategy
MicroStrategy co-founder Michael Saylor stated in an earnings call that increasing regulatory clarity in the crypto industry makes institutional investors more comfortable participating. “I think we’ll see positive regulatory initiatives that will create more clarity and consistency during the coming 12 months,” he said.
MicroStrategy began purchasing Bitcoin in 2020 as part of a corporate strategy to make cryptocurrency its primary treasury asset. Despite volatility and accounting losses, the company has continued to acquire more bitcoin, with Saylor being a vocal proponent of the digital currency.
With bitcoin prices considerably below record highs, MicroStrategy appears to be taking advantage of lower prices to purchase more.
Saylor maintains the company is playing a long game and views the blockchain asset as superior to holding fiat currencies like the U.S. dollar long-term due to inflationary concerns.
MicroStrategy is not the only public company investing in Bitcoin. However, it has accumulated a substantially larger position than most other firms. Its commitment to acquiring and holding bitcoin remains strong, even as the cryptocurrency endures a yearlong bear market.