MicroStrategy Report Reveals Bitcoin Impairment Charges of $917.8 million and Discloses Payment
Michael Saylor is stepping down as CEO of MicroStrategy on August 8, however, the company says its outlook on bitcoin will no longer trade — in spite of massive losses associated with digital belongings in the 2d quarter.
The software program organization published impairment fees pertaining to bitcoin of $918 million for the 2d quarter of 2022, following losses of $425 million in the first quarter. The firm’s income reduced by 2.6% in contrast with the 2d quarter of 2022.
Incoming CEO Phong Le stated the firm’s plans to keep bitcoin long-term will now not change.
Saylor will proceed to chair the firm’s funding committee, he stated on Tuesday’s income call, whilst additionally growing his advocacy efforts for bitcoin. Saylor informed analysts the reshuffling of roles used to be a win for anyone involved.
In a strive to preempt questions on bitcoin’s rate dropping, Chief Financial Officer Andrew Kang stated the company has adequate collateral to pledge in case of any additional volatility in crypto markets.
The choice of Phong Le’s succession used to be seven years in the making — for the reason that Le joined the company and labored intently with Saylor on a number of projects.
Saylor instructed listeners in his opening remarks that the modern-day wave of scrutiny dealing with cryptocurrency used to be true for the asset classification in the medium to long term. The loss of life of Celsius, Voyager, and 3AC has eliminated unsafe commercial enterprise practices from the market, he stated, and has kickstarted regulatory preparations – which he stated have to be precise for bitcoin in the lengthy run.