MicroStrategy released its earnings report for the third quarter of 2022 on Nov. 1, saying it achieved “strong” year-over-year growth in subscription services and “record” growth in subscription billings, but still recorded a YOY drop in revenue with a net loss of $10.8 million.
“We are continuing to see the global adoption of our cloud platform by both domestic and international customers, and to benefit from the longstanding durability of our enterprise analytics business, with a third-quarter renewal rate of 95%, despite the ongoing macroeconomic headwinds,” said Phong Le, the president and CEO of MicroStrategy.
The company reported a total revenue of $125.4 million for Q3 2022, down from Q3 2021 revenue of $128 million but up from the $122.1 million in revenue it reported for Q2 2022.
In its Form 10-Q filing with the Securities and Exchange Commission (SEC), MicroStrategy reported a third-quarter non-GAAP diluted loss of $10.8 million, or $0.96 per share, versus a loss of $28.4 million, or $2.84 per share, in the year-ago quarter.
As the largest publicly-traded Bitcoin (
$104,067.00 ) holder in the world, the company now shows 130,000 BTC. Around 301 BTC were purchased in the third quarter for $6 million at an average purchase price of $19,851 per BTC. Since it began adding BTC to its balance sheet in 2019, the company spent a total of $3.983 billion, or approximately $30,639 per BTC, on the purchase.
Last quarter, the volatility of the crypto market devastated the value of MicroStrategy’s Bitcoin ( $104,067.00 ) holdings. The company reported a $918 million loss on its digital asset holdings, which brought its cumulative impairment loss to $2 billion since it began its Bitcoin ( $104,067.00 ) acquisition.
According to the earnings report, the company’s cumulative impairment losses were $1.990 billion, while the average carrying amount per Bitcoin ( $104,067.00 ) stood at $15,331.
This quarter, it posted a loss of just $700,000 million on its Bitcoin ( $104,067.00 ) holdings when compared to the past quarter, reflecting a much less volatile crypto market.
“We incurred a minimal Bitcoin ( $104,067.00 ) impairment charge as Bitcoin ( $104,067.00 ) prices were stable during the third quarter, and were encouraged by FASB’s recent announcement of its support for fair value accounting for Bitcoin ( $104,067.00 ) ,” said Andrew Kang, the CFO of MicroStrategy.
The NASDAQ-listed company saw its stock recover from a 15% drop at the beginning of October, surpassing its September high of $262.2.
Posted In: Bitcoin ( $104,067.00 ) , Adoption
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