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The third quarter earnings for business intelligence firm MicroStrategy revealed a narrowed net loss of $27.1 million for the quarter, while it continues to grow its Bitcoin (
$63,881.00 ) (BTC) portfolio despite poor crypto market conditions.
The world’s largest publicly traded corporate Bitcoin ( $63,881.00 ) owner confirmed it still owns 130,000 BTC at the end of Q3 2022. That amount represents 0.62% of all Bitcoin ( $63,881.00 ) that will ever be owned, which it says was acquired for a total cost of around $4 billion, or $30,639 per BTC.
The company reported on Nov. 1 impairment charges for the quarter of $727,000, far less than the $917.8 million it recorded in the second quarter of 2022 or the $65 million for the same period last year, thanks to stable Bitcoin ( $63,881.00 ) prices throughout the last quarter.
An impairment charge is an accounting term used by businesses to describe a reduction in the value of held assets, and according to MicroStrategy, it had cumulative impairment losses of approximately $2 billion as of Sept. 30.
In an earnings call MicroStrategy president and CEO, Phong Le reiterated the firm’s long-term hodling strategy, saying:
“We have not sold any Bitcoin ( $63,881.00 ) to date. To reiterate our strategy, we seek to acquire and hold Bitcoin ( $63,881.00 ) for the long term. And we do not currently plan to engage in sales of Bitcoin ( $63,881.00 ) . We have a long-term time horizon and the core business is not impacted by the near-term Bitcoin ( $63,881.00 ) price fluctuations.”
Michael Saylor, who stepped down from his position as CEO on Aug. 8 but remains with the company as an executive chairman, mentioned in the call that since embarking on its Bitcoin ( $63,881.00 ) strategy on Aug. 11, 2020, the company’s share price was up 116% compared to Bitcoin ( $63,881.00 ) ’s 72% increase for the same period.
In the accompanying earnings report, chief financial officer Andrew Yang gave a nod to the recent announcement from the United States Financial Accounting Standards Board’s decision to support “fair value accounting” for Bitcoin ( $63,881.00 ) , noting:
“If finally adopted and implemented, we believe fair value accounting will improve upon the current, unfavorable intangible accounting treatment applicable to Bitcoin ( $63,881.00 ) holdings and will promote additional institutional adoption of Bitcoin ( $63,881.00 ) as an asset class”
MicroStrategy reported adjusted earnings per share losses of $0.96, compared to analyst estimates of a loss of $0.94, and its revenues of $125.4 million surpassed estimates by just 0.05%.
Related: The Madeira Bitcoin ( $63,881.00 ) adoption experiment takes flight
The firm’s revenues over the past year have reached $119.3 and $122.1 million respectively for Q1 and Q2. $16.4 million of its Q3 revenue came from its subscription services, which represents a 51% increase compared to the year prior in what is the fastest-growing source of revenue for MicroStrategy.
