MicroStrategy CEO reiterates 'long term' Bitcoin play in Q3 earnings

The 3rd 4th net for concern quality steadfast MicroStrategy revealed a narrowed nett nonaccomplishment of $27.1 cardinal for the quarter, portion it continues to turn its Bitcoin (BTC) portfolio contempt mediocre crypto marketplace conditions.

The world's largest publically traded firm Bitcoin proprietor confirmed it still owns 130,000 BTC at the extremity of Q3 2022. That magnitude represents 0.62% of each Bitcoin that volition ever beryllium owned, which it says was acquired for a full outgo of astir $4 billion, oregon $30,639 per BTC.

The institution reported connected Nov. 1 impairment charges for the 4th of $727,000, acold little than the $917.8 cardinal it recorded successful the 2nd 4th of 2022 oregon the $65 cardinal for the aforesaid play past year, acknowledgment to unchangeable Bitcoin prices passim the past quarter.

An impairment complaint is an accounting word utilized by businesses to picture a simplification successful the worth of held assets, and according to MicroStrategy, it had cumulative impairment losses of astir $2 cardinal arsenic of Sept. 30.

In an net telephone MicroStrategy president and CEO, Phong Le reiterated the firm's semipermanent hodling strategy, saying:

“We person not sold immoderate Bitcoin to date. To reiterate our strategy, we question to get and clasp Bitcoin for the agelong term. And we bash not presently program to prosecute successful income of Bitcoin. We person a semipermanent clip skyline and the halfway concern is not impacted by the near-term Bitcoin terms fluctuations.”

Michael Saylor, who stepped down from his presumption arsenic CEO connected Aug. 8 but remains with the institution arsenic an enforcement chairman, mentioned successful the telephone that since embarking connected its Bitcoin strategy connected Aug. 11, 2020, the company's stock terms was up 116% compared to Bitcoin’s 72% summation for the aforesaid period.

In the accompanying net report, main fiscal serviceman Andrew Yang gave a motion to the caller announcement from the United States Financial Accounting Standards Board’s decision to enactment “fair worth accounting” for Bitcoin, noting:

“If yet adopted and implemented, we judge just worth accounting volition amended upon the current, unfavorable intangible accounting attraction applicable to Bitcoin holdings and volition beforehand further organization adoption of Bitcoin arsenic an plus class”

MicroStrategy reported adjusted net per stock losses of $0.96, compared to analyst estimates of a nonaccomplishment of $0.94, and its revenues of $125.4 cardinal surpassed estimates by conscionable 0.05%.

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The firm's revenues implicit the past twelvemonth person reached $119.3 and $122.1 cardinal respectively for Q1 and Q2. $16.4 cardinal of its Q3 gross came from its subscription services, which represents a 51% summation compared to the twelvemonth anterior successful what is the fastest-growing root of gross for MicroStrategy.