The results of third trimester on Wall Street continue their course and give some joy, as is the case with Microstrategy-A. The adjusted earnings have beaten estimates and there was changes in their holdings Bitcoinaccording to David Hollerith at Yahoo Finance.
The company reported adjusted earnings of 96 cents per shareagainst the consensus estimate of Bloomberg 44 cents per share. The revenue reached 125.4 million dollarsslightly below the $127.25 million that analysts had expected.
The book value of MicroStrategy digital assets was $1.99 billionwhich reflected a cumulative impairment loss of $1.99 billion since acquiring bitcoin for the first time in August 2020 and is little changed for the quarter.
Until the close of Tuesday, the stock is down 52.7% year to date.
The losses in the quarter totaled $93.9 million, with $93.2 million attributed to operating expenses and $700,000 to his bitcoin holdings.a far cry from bitcoin’s $917 million deterioration in the previous quarter.
Headquartered in Northern Virginia, the enterprise cloud platform is now the largest corporate bitcoin holder and faced headwinds due to the bitcoin price drop in the previous quarter. Your BTC holding currently incurs a 50% unrealized loss on your total investment in the cryptocurrency.
“We incurred a minimal Bitcoin impairment charge as Bitcoin prices were flat during Q3, and were encouraged by the recent FASB announcement of their support for fair value accounting for bitcoin,” said Andrew Kang, MicroStrategy CFO.
“If ultimately adopted and implemented, we believe that fair value accounting will improve the current unfavorable intangible accounting treatment applicable to bitcoin holdings and promote further institutional adoption of Bitcoin as an asset class,” Kang said in the statement.
According to Generally Accepted Accounting Principles (GAAP), MicroStrategy must account for your bitcoin purchases recording its initial cost with a reduction if the value of Bitcoin decreases. The minimum of the year To date Bitcoin was established at Juneso the company’s third-quarter loss was little affected by holding the asset.
“While it does not reflect the company’s Bitcoin holdings at market value, the impairment is a profit and loss risk for other public companies that are considering the same strategy,” according to Mark Palmer, Senior Equity Analyst at BTIG.
But the practice is likely to change in the coming months, as the Financial Accounting Standards Board (FASB) is in talks to propose changes that would allow publicly traded US companies record digital assets at their fair value.
MicroStrategy ended the third quarter with approximately 130,000 bitcoins on your balance sheetpurchased at a total purchase price of $3.98 billion and a average price of $30,639 per bitcoin.
Microstrategy-A closed the session on Tuesday at $261.34 and the 70 and 200 period moving averages are surrounding the last candles. Meanwhile, Ei indicators are mostly bullish.