MicroStrategy reported an impairment loss of just $700,000 on its bitcoin assets in the third quarter, almost less than analysts had expected.
SeekingAlpha showed the software company’s third-quarter sales of $125.4 million, missing analysts’ average forecast of $125.8 million. The company’s revenue last year was $128 million.
Please join the @MicroStrategy management team at 5pm ET as we discuss third quarter 2022 financial results and answer questions about our business and the outlook for #BusinessIntelligence and #Bitcoin. $MSTR https://t.co/lAMyZ5Rmtt
— Michael Saylor ⚡️ (@saylor) November 1, 2022
Phong Le succeeded Michael Saylor as CEO on August 8; thus, the third quarter is his first role. Despite the leadership change, MicroStrategy remains committed to Bitcoin, spending an additional $6 million on the cryptocurrency between Aug. 2 and Sept. 19, bringing its total to 130,000 BTC.
Impairment losses related to Bitcoin assets were $700,000 compared to $65 million in Q3 2021. That’s a notable drop from $918 million in the second quarter, as prices have not been volatile over the past three months. The company includes impairment losses in operating costs.
Saylor’s Class B shares keep the company’s Bitcoin strategy largely unchanged despite the CEO change. As of June 30, he held 1,961,668 shares of Class B stock. Investors are eligible to receive 1.0 times the voting rights per Class A holder, while Class B holders are eligible to receive 10.0 times the voting rights per share.
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