BitcoinBTC NewsBusinessCryptoCryptocurrency NewsGeneral NewsNewsTech News

MicroStrategy’s Revenue for the Third Quarter Fell Short of its Estimates

MicroStrategy's Revenue for the Third Quarter Fell Short of its Estimates

MicroStrategy reported an impairment loss relating to its bitcoin assets of just $700,000 for the third quarter, falling barely short of analysts’ estimates.

SeekingAlpha shows the software company’s third-quarter sales of $125.4 million, which is less than the average analyst forecast of $125.8 million. The company’s revenue was $128 million in the prior year.

Phong Le took over from Michael Saylor as CEO on August 8; therefore, the third quarter was his first in the role. Despite a leadership transition, MicroStrategy has remained committed to bitcoin, spending an extra $6 million on the cryptocurrency between August 2 and September 19, bringing its total to an even 130,000 BTC.

Impairment losses linked to bitcoin assets were $700,000, compared with $65 million during the 3rd quarter of 2021. It’s a significant decline from the second quarter’s $918 million because prices haven’t moved much over the last three months. The company accounts for impairment losses as a cost of doing business.

Despite the CEO transition, Saylor’s Class B shares have kept the company’s bitcoin strategy primarily unchanged. As of June 30, he was holding 1,961,668 Class B shares. Investors are eligible for 1.0x votes per Class A holders compared to 10.0x votes per share for Class B.


Related Articles

Jihan Wu says Bitcoin Cash Community is Working to Kick Craig Wright Out


Google Assistant reminders not working on Android over last few days


The Blockchain Underlying NFT Game Axie Infinity Got Hacked for $625 million

Mridul Srivastava