While focusing on strategic spend. We also successfully launched our AI product in Q3, while carefully managing product development costs through global delivery center efficiencies, and speed of execution. Our priority and results are rooted in the active management of costs in order to drive margin and profitable growth. Turning to Slide 15, we reported a total non-GAAP operating loss in the third quarter of $8 million, of which the non-cash digital asset impairment charge was $34 million for the quarter. For the third quarter, we reported a GAAP net loss of $143 million, which included a $110 million tax provision expense. This non-cash tax expense was related to the reestablishment of our valuation allowance on our deferred tax asset, directly related to our Bitcoin holdings.
The expense was recognized, because the market value of Bitcoin on the reporting date of September 30 was below our aggregate cost basis. At the end of Q4, we will reevaluate the fair value of Bitcoin again at 12/31. And if the price of Bitcoin on that date is above our aggregate cost of holdings, we would readjust the valuation allowance at the end of Q4 and see a core spend corresponding non-cash tax benefit. Turning now to our Bitcoin strategy, we again increased our total Bitcoin holdings and acquired 5,912 Bitcoins in the third quarter. After the end of the quarter, we purchased an additional 155 Bitcoins using cash from operations. As of October 31, 2023, the company held a total of 158,400 Bitcoins, acquired for an aggregate cost of $4.7 billion or $29,586 per Bitcoin.
Bitcoins purchased by MicroStrategy through cash generated by the software business are held at the MicroStrategy entity and as a result, those Bitcoins are pledged against our 2028 Senior Secured Notes. Bitcoins purchase their proceeds from Capital Markets activities, including equity and debt issuances are held at MicroStrategy, a wholly-owned subsidiary of MicroStrategy. These Bitcoins are not pledged to our Senior Secured Notes and are fully unencumbered. In Q3, we purchased 5,445 Bitcoins for $147 million using net proceeds from our at the market equity program. And as noted a moment ago, these Bitcoins are held at MicroStrategy. We also purchased an additional 467 Bitcoins for $14.4 million using excess cash from operations, which are held at MicroStrategy.
And subsequent to the end of the quarter and October, we use additional excess cash from operations to purchase the additional 155 Bitcoins for $5.3 million also held at MicroStrategy. Our Bitcoin strategy remains unchanged, which is to acquire and hold Bitcoin, and we plan to accumulate more Bitcoin over time using both excess cash from operations and proceeds from the capital markets. Bitcoin has outperformed much of the market this year and while we still see price volatility, as the asset class continues to mature, Bitcoin prices have stabilized over a narrow range – over a narrower range, compared to prior years. MicroStrategy is the largest publicly traded corporate holder of Bitcoin in the world. And we remain committed to our Bitcoin acquisition strategy with the highest conviction, long-term focus and with a strong risk managed approach.
As of September 30, 2023, the carrying value of our Bitcoin holdings was approximately $2.5 billion, compared to approximately $4.3 billion in market value based on the Bitcoin price as of the last day of the quarter. As of market close on Tuesday, October 31, the market value of our 158,400 Bitcoins was approximately $5.5 billion. Our Bitcoin remains subject to the current indefinite lived intangible asset accounting rules under, which we must record an impairment, when there’s any decrease in the fair value, below our carrying value at any time during the quarter, which occurred in Q3, when Bitcoin price fell to $24,900. We remain optimistic that FASB, will finalize the change in accounting rules for certain digital assets, including Bitcoin to fair value accounting in the near term.
Now, turning to Slide 19. In Q3, we continue to execute power at the market our ATM equity offering and raised approximately $147.3 million in aggregate net proceeds through the sale of Class A common stock. In the current ATM program, we have issued 403,000 shares and have approximately $602 million of remaining ATM capacity. As with prior programs, we may use it proceeds for general corporate purposes, which include the purchase of Bitcoin as well as the repurchase or repayment of our outstanding debt. The incremental ATM capacity will allow us to benefit from institutional demand for Bitcoin exposure, and will allow us to opportunistically raise capital to continue and creating value for our shareholders. Our outstanding debt and – convertible notes remain unchanged at a total $2.2 billion with a blended weighted average interest rate of approximately 1.6%.
Also, at the end of the third quarter, we had $45 million in cash on our balance sheet, and sufficient overall liquidity to manage our ongoing operating needs and our outstanding debt. Since the third quarter of 2021, we have raised a total of approximately $1.9 billion in gross proceeds through our ATM programs, the average price over all issuances of approximately $419 per share. The primary use of historical ATM proceeds to-date has been to acquire additional Bitcoin, and we also use the proceeds to repay our $205 million Bitcoin back loan at a discount. Our capital allocation strategy – continues to be focused on improving our overall capital structure by strengthening our balance sheet through additional Bitcoin holdings and managing our debt very carefully.
On Slide 21, as of October 31, we now hold a total of 158,400 Bitcoins, of which 15,886 Bitcoins are held at MicroStrategy the parent and are pledged as collateral securing our 2028 notes. The remaining 142,514 Bitcoins are held at MicroStrategy, all of which are unpledged, and unencumbered as of quarter end, representing 90% of our total Bitcoin holdings are $4.9 billion in current market value. The earliest of our debt maturities is not until December 2025 for the 2025 convertible notes, which is eight quarters away from today. Within that period of time, we also expect the Bitcoin halving to occur in Q2 of 2024. We actively monitor our capital structure and are constantly evaluating, liability management opportunities to manage and prepare for all upcoming debt.
Overall, we believe the position, the positive position in our cloud business along with [technical difficulty] license sales in combination with the release of our first to market enterprise scale integrated AI/BI product, produces positive catalysts heading into the fourth quarter. That being said, we maintain the stance of cautious optimism due to the ongoing presence of macroeconomic headwinds. We anticipate total revenue this year to be in line with last year, we continue to focus on product innovation in AI and cloud. We will continue to grow cloud subscription revenues and strengthen the quality of our recurring revenue as we transform our platform. We will remain disciplined and continue to manage to drive margin expansion and we will continue to acquire and hold Bitcoin.
Thank you for your time today and for your continued support of MicroStrategy. I’ll now turn the call over to Michael for his remarks.
Michael Saylor: Thank you. Thanks for joining us today, I thought I would start with some – a quick performance review of MicroStrategy since we adopted our Bitcoin strategy. It’s now approximately 37 months. So just slightly more than three years, since – we adopted our Bitcoin strategy. And we benchmark ourselves against all major asset classes and against big tech stocks, and also against enterprise software companies that our enterprise software peers. And I’m happy to report to you that our performance over this time period is plus 242%. And that exceeds the Bitcoin performance in the same period of 192%. So MicroStrategy is outperforming the Bitcoin asset index. The S&P is up 25% over that time period, so we’ve almost 10xed the S&P performance.
