The third quarter earnings for business intelligence firm MicroStrategy stated about sustaining a net loss worth $27.1 million for the quarter, while it is believed to continue with its growth of the Bitcoin portfolio despite poor cryptocurrency market conditions, as reported by Cointelegraph.
According to Cointelegraph, it was confirmed by reportedly the world’s largest corporate Bitcoin owner about the platform owning 130,000 BTC at the end of Q3, 2022. The amount shows 0.62% of all Bitcoin that will ever be owned, which it mentioned about being acquired for a total cost worth four billion dollars, or $30,639 per BTC.
On the basis of information by Cointelegraph, on November 1, 2022, the company reported impairment charges worth $727,000 for the quarter, which was less than $917.8 million that was recorded in the second quarter of 2022 or $65 million for the same period in the previous year, on account of stability in Bitcoin prices throughout the last quarter. Insights provided by MicroStrategy showed that it had impairment losses close to an approximate amount worth two billion dollars, as of September 30, 2022.
“We have not sold any Bitcoin to date. To reiterate our strategy, we seek to acquire and hold Bitcoin for the long term. And we do not currently plan to engage in sales of Bitcoin. We have a long-term time horizon and the core business is not impacted by the near-term Bitcoin price fluctuations,” Phong Le, president and CEO, MicroStrategy, said.
“If finally adopted and implemented, we believe fair value accounting will improve upon the current, unfavorable intangible accounting treatment applicable to Bitcoin holdings and will promote additional institutional adoption of Bitcoin as an asset class,” Andrew Yang, chief financial officer, mentioned in an earnings report.
Moreover, Cointelegraph noted that MicroStrategy reported adjusted earnings per share losses of $0.96, in comparison to analyst’s estimated loss worth $0.94, and its revenue worth $125.4 million going past estimates by 0.05%. Reportedly, the firm’s revenue reached $119.3 million and $122.1 million, respectively, for Q1 and Q2, 2022.
(With insights from Cointelegraph)
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