Despite a loss of $ 27 million, Microstrategy improved in the 3rd quarter because Bitcoin remains stable
Despite a loss of $ 27 million, Microstrategy improved in the 3rd quarter because Bitcoin remains stable
Despite a net loss for the third quarter, Microstrategy recorded a dramatic improvement compared to the previous three months in view of the subdued Bitcoin volatility.
During a conference call on Tuesday,managers of Microstrategy said that the company is planning to continue to buy and keep Bitcoin without selling plans.
The business intelligence company based in Virginia reported a net loss of $ 27 million in the third quarter-a drastic improvement compared to its net loss of $ 1.1 billion in the previous three-month period.
The value reduction expenses for digital assets from Microstrategy-which come into play when the market value of Bitcoin falls below the market-adjusted purchase value of the company-in the third quarter amounted to $ 700,000 compared to $ 918 million in the second.
The company's shares rose by 5.8 %in the early after -market trade in New York. Microstrategy fell by around 54 % in the year.
Microstrategy, the largest listed company owner of Bitcoin (BTC), holds 130,000 bitcoins after it bought 301 BTC in the third quarter. As of September 30th, the value of these Bitcoin stocks was almost $ 2 billion, which reflects cumulative reduction losses of around $ 2 billion since their purchase.
"With regard to a potential, more serious macro desolation, we have no plans to adapt our Bitcoin strategy," said Chief Financial Officer Andrew Kang at the conference call. "We still consider our investment as a long -term perspective, especially over cycles ... and we will continue to believe in this core principle."
Michael Saylor, Executive Chair from Microstrategy, said that Bitcoin volatility has improved in recent months. According to Kaiko data, the volatility of the assets fell under that of the NASDAQ and the S&P 500 share index.
"This is really optimistic about the investment class and promising," said Saylor.
company leaders do not respond to alleged tax evasion
The results of the third quarter come, since Microstrategy and Michael Saylor are accused of a lawsuit that was initiated by the Washington General Prosecutor.
Attorney General Karl Racine claimed in September that Saylor personally had illegally avoided more than $ 25 million of DC taxes over about a decade by claiming to be based in other jurisdiction, including Florida. Racine also claimed that Microstrategy had conspired in tax evasion.
Douglas Gansler, partner at Cadwalader, Wickersham & Taft-the law firm, to which Whistleblow first came-said Blockworks that the damage could amount to about $ 165 million.
Saylor, in an explanation that was sent to virginia business in September he said, He contradicts the allegations of tax fraud, while Microstrategy said in a statement that the claims against the company were "wrong". Eugene Scalia, a partner in Gibson's DC office, Dunn & Crutcher and former US Minister of Labor, should represent Saylor in the lawsuit.
managers of the company did not comment on the lawsuit during the call.
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The contribution Microstrategy Records Impovered Q3 as Bitcoin Holds Steady Despite the loss of $ 27 million, there is no financial advice.