MicroStrategy Suffered $425M Impairment Charge on Bitcoin Investment in Q2
Crypto News

MicroStrategy Suffered $425M Impairment Charge on Bitcoin Investment in Q2

2ในการอ่าน
1 year ago

Despite this eye-watering sum, the company says it is determined to continue buying more crypto.

MicroStrategy Suffered $425M Impairment Charge on Bitcoin Investment in Q2

สารบัญ

MicroStrategy has vowed that it has no plans to slow down its aggressive Bitcoin acquisition strategy, despite the cryptocurrency’s value tumbling in Q2.

The business intelligence firm says it continues to be pleased by its approach to crypto investments, but admitted that it suffered an impairment charge of $424.8 million in the three months to June 30.

Accounting rules mean publicly listed companies need to record the lowest price that Bitcoin reaches over the course of a quarter. A few days ago, we saw that Tesla had booked a rather painful impairment charge of $23 million.

However, it’s important to stress that these losses are just on paper, and would only be realized if the asset in question is sold.

MicroStrategy — which now owns more than 105,000 BTC — has made it clear that it has no plans to sell up anytime soon, and intends “to continue to deploy additional capital into our digital asset strategy.”

A Bullish Quarter 

MicroStrategy’s total revenues for the second quarter came in at $125.4 million. That’s up 13.4% when compared with the same period in 2020. The company’s CEO, Michael Saylor, said:

“MicroStrategy continued its strong 2021 by delivering an outstanding operational performance across the board and completing another successful capital raise to expand our digital asset holdings. We had one of our best operational quarters in our software business in years, highlighted by 13% revenue growth. Our success in the market is being driven by the investments we have made and the broad adoption of our innovative MicroStrategy platform.”
5 people liked this article