- MicroStrategy revealed its third-quarter loss of $27.1 million.
- The company had the loss despite the growth of Bitcoin amidst the crypto winter.
- The loss constitutes $2.39 of its complete share.
MicroStrategy Incorporated, an American business intelligence company revealed its third-quarter loss of $27.1 million while the Bitcoin portfolio continues to grow despite the fall of the crypto market.
While the company announced that it still owns 130,000 BTC at the end of Quarter 3, the net loss of the company costs around $2.39 of its complete share.
The company’s Executive Chairman Michael Saylor tweeted that MicroStrategy had purchased an additional 301 Bitcoins for $6 million, which would constitute 0.62% of all bitcoins that would ever be owned by the company.
On November 1, the company reported that the impairment charge for the quarter was $727,000, which was much lesser than the charges of the second quarter, as well as the previous year which were around $917.8 million and $65 million respectively.
Notably, the impairment charges refer to the reduction in the value of assets held by the company. As of September 30, MicroStrategy had a cumulative impairment loss of almost $2 million.
Phong Le, CEO and President of MicroStrategy mentioned the firm’s long-term holding strategy during an official meeting:
We have not sold any Bitcoin to date. To reiterate our strategy, we seek to acquire and hold Bitcoin for the long term. And we do not currently plan to engage in sales of Bitcoin. We have a long-term time horizon and the core business is not impacted by the near-term Bitcoin price fluctuations
Significantly, MicroStrategy had been buying Bitcoins in large amounts as a strategy to fight against deflation. But, this year the company was forced to take massive writedowns due to the digital currency fall. In the first quarter Bitcoin fell almost 60% while in the recent quarter, it climbed about 3.7%.
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