The world’s largest publicly traded Bitcoin owner confirmed that he still owned 130,000 BTC at the end of the third quarter of 2022. This amount represents 0.62% of all Bitcoin that will ever be owned, which it says was acquired at a total cost of about 4 $1 billion, or $30,639 per bitcoin.
The company reported on November 1 that impairment charges for the quarter were $727,000, well below the $917.8 million it recorded in the second quarter of 2022 or $65 million for the same period last year, thanks to stable bitcoin prices throughout the last quarter. .
An impairment charge is an accounting term that companies use to describe the decline in the value of assets owned, and according to MicroStrategy, they have incurred cumulative impairment losses of approximately $2 billion as of September 30.
On the earnings call, MicroStrategy’s president and CEO, emphasized the company’s long-term strategy, saying:
“We have not sold any bitcoin yet. To replicate our strategy, we seek to acquire and hold bitcoin for the long-term. We are not currently planning to engage in bitcoin sales. We have a long-term time horizon and the underlying business is not affected by near-term bitcoin price volatility.”
Michael Saylor, who resigned as CEO on August 8 but remains with the company as CEO, mentioned in the call that since launching the bitcoin strategy on August 11, 2020, the company’s stock price has increased 116% compared to a 72% increase in Bitcoin for the same period.
In the accompanying earnings report, CFO Andrew Yang gave a reference to the recent announcement of the US Financial Accounting Standards Board’s decision to support “fair value accounting” for bitcoin, noting:
“If it is finally adopted and implemented, we believe that fair value accounting will improve in accordance with the current intangible and intangible accounting treatment applied to bitcoin holdings and will promote additional institutional adoption of bitcoin as an asset class.”
MicroStrategy reported an adjusted earnings per share loss of $0.96, compared to analysts’ estimates of a loss of $0.94, and its $125.4 million revenue exceeded estimates by just 0.05%.
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The company’s revenue over the past year was $119.3 and $122.1 million, respectively, for the first and second quarters. $16.4 million of its revenue for the third quarter came from subscription services, which is a 51% increase over the previous year in what is MicroStrategy’s fastest growing source of revenue.