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Business intelligence firm MicroStrategy’s third-quarter earnings reveal a narrower quarterly net loss of $27.1 million, while bitcoin continues to grow (Bitcoin) portfolio despite poor crypto market conditions.
The Bitcoin owner of the world’s largest publicly traded company has yet to confirm it Own 130,000 BTC At the end of Q3 2022. This amount is said to represent his 0.62% of all Bitcoin ever owned, and was acquired at a total cost of around $4 billion ($30,639 per BTC).
Company report Impairment charges for the fourth quarter of November 1 were $727,000, well below the $917.8 million recorded in the second quarter of 2022 or $65 million in the same period last year.
Impairment charges are the accounting term companies use to describe the decline in the value of their holdings, which had cumulative impairment losses of approximately $2 billion as of September 30, according to MicroStrategy.
On the earnings call, MicroStrategy president and CEO Phong Le reiterated the company’s long-term hodling strategy, stating:
We have never sold bitcoin before. To repeat our strategy, we are trying to acquire bitcoin and hold it for the long term. No. We have a long-term time horizon and our core business is immune to Bitcoin’s short-term price volatility.”
Michael Thaler resigned as CEO Since launching its Bitcoin strategy on August 11, 2020, the company’s stock price has risen 116%, compared with Bitcoin’s 72% gain over the same period, he said in a call.
In the accompanying earnings report, Chief Financial Officer Andrew Yang echoed the recent announcement of the US Financial Accounting Standards Board. Decision in favor of fair value accounting Note the following about Bitcoin:
If finally adopted and implemented, fair value accounting will improve the current adverse intangible accounting treatment applied to holding bitcoin and facilitate further institutional adoption of bitcoin as an asset class. I believe you will.”
MicroStrategy reported a loss of $0.96 in adjusted earnings per share. Analyst An estimated loss of $0.94 and a profit of $125.4 million were only 0.05% higher than estimated.
Related: Madeiras Bitcoin Adoption Experiment Takes Off
The company’s revenue for the past year reached $119.3 million and $122.1 million in the first and second quarters, respectively. His $16.4 million in Q3 revenue came from subscription services, the fastest growing revenue stream for MicroStrategy, up 51% year-over-year.
