MicroStrategy (MSTR) reported a second quarter internet lack of $102.6 million or $5.74 per share versus earnings of $22.2 million or $1.52 per share one 12 months earlier.
The loss got here as the corporate took an impairment cost on its bitcoin holdings of $180.1 million versus $24.1 million within the second quarter a 12 months in the past.
Led by Government Chairman Michael Saylor, the corporate disclosed July 31 bitcoin holdings of 226,500 tokens, up a handful of cash for the reason that newest buy announcement in mid-June. These 226,500 bitcoins had been acquired for $8.3 billion or a median of $36,821 per token. On the present worth of $63,500, these property are value about $14.4 billion.
“On the adoption entrance, we’re extraordinarily optimistic with the improved understanding of bitcoin and the growing help for the ecosystem from bipartisan politicians and establishments on show on the Bitcoin 2024 Convention in Nashville,” mentioned CEO Phong Le within the earnings launch.
The impairment cost displays the loss or acquire of the corporate’s bitcoin holdings in comparison with the value that it was bought at. Whereas new accounting tips enable for firms to mark to market their digital asset holdings, companies are usually not but required to take action.
Checking operations, the corporate posted $111.4 million in income versus analyst estimates of $122 million, in response to FactSet.
Shares fell 6.5% within the common buying and selling session previous to earnings on Thursday alongside a steep fall in each inventory and crypto markets. MSTR has greater than tripled over the previous 12 months as the value of bitcoin greater than doubled over the identical interval.
The Nasdaq-listed software program agency in July introduced a 10-for-1 inventory break up to make its inventory extra accessible to traders and staff. That break up turned efficient on the shut of enterprise at the moment.