MicroStrategy narrowly missed on its third quarter revenue, while reporting just $700,000 in impairment losses related to bitcoin holdings.
The software firm said that revenue came in at $125.4 million for the third quarter, compared to the $125.8 million average analyst estimate, SeekingAlpha reported. It posted $128 million a year earlier.
The third quarter was Phong Le's first as CEO , having taken over the position from Michael Saylor on Aug. 8. Despite the change at the top, MicroStrategy has maintained the course when it comes to bitcoin, purchasing an additional $6 million worth between Aug. 2 and Sept. 19 — which took its total to an even 130,000 BTC.
Impairment losses relating to bitcoin holdings were $700,000, compared with $65 million during the third quarter of 2021. It's also a significant drop from the $918 million in the second quarter as prices have stagnated over the past three months. Impairment losses are included as part of the firm's operating expenses.
"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," CFO Andrew Kang said.
The change in leadership has had little impact on the firm’s bitcoin strategy, due to Saylor’s Class B shares. He held 1,961,668 Class B shares as of June 30. Class B holders are entitled to 10.0x votes per share compared to 1.0x votes per Class A holders.
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