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MicroStrategy Reported $125.4 Million In Revenue For The Third Quarter

According to its most recent financial report, MicroStrategy recorded a $727,000 digital asset impairment charge on its Bitcoin (BTC) assets in the third quarter, down considerably from $917.8 million in the second quarter.

The software company reported third-quarter sales of $125.4 million, compared to the $125.8 million average analyst expectation. It made $128 million the previous year.

Phong Le’s first quarter as CEO began on August 8, after taking over from Michael Saylor. Despite the shift at the top, MicroStrategy has remained on track with Bitcoin, acquiring an extra $6 million worth between August 2 and September 19, bringing its total to an even 130,000 BTC.

While MicroStrategy’s big Bitcoin purchases in 2021 and early 2022 were funded via the issuing of secured notes and the sale of common stock, the business’s considerably more modest Bitcoin purchases in the second and third quarters of 2022 were done simply with surplus cash, according to the company.

Michael Saylor

Andrew Kang, Chief Financial Officer of the company, stated:

“We incurred a minimal bitcoin impairment charge as bitcoin prices were stable during the third quarter, and were encouraged by FASB’s recent announcement of its support for fair value accounting for Bitcoin.
If finally adopted and implemented, we believe fair value accounting will improve upon the current, unfavorable intangible accounting treatment applicable to Bitcoin holdings and will promote additional institutional adoption of Bitcoin as an asset class.”

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.