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.
Please join the @MicroStrategy management team at 5pm ET as we discuss our Q3 2022 financial results and answer questions about our business and outlook for #BusinessIntelligence and #Bitcoin. $MSTRhttps://t.co/lAMyZ5Rmtt
— Michael Saylor⚡️ (@saylor) November 1, 2022
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.