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MicroStrategy reports $1 billion loss, resigns as CEO to focus on Bitcoin

MicroStrategy Co-Founder Michael Saylor gave up his chief executive position Enterprise software maker says it will focus more on Bitcoin after reporting losses of more than $1 billion in connection with the plunge in cryptocurrency prices in the second quarter. Bloomberg report: Saylor, who founded Virginia-based Tysons Corner in 1989, will continue to serve as chairman while maintaining his Bitcoin buying strategy. Phong Le, President of MicroStrategy, will assume the role of Chief Executive Officer. The company also filed with the Securities and Exchange Commission for registration of 450,000 shares. MicroStrategy has claimed $917.8 million in impairment costs related to the depreciation of the Bitcoin it holds. Bitcoin plummeted 59% in the quarter, trading around 45% below its price at the end of the year.

Sales fell to $122.1 million. Analysts polled by Bloomberg expected revenue of $123.25 million in the second quarter. It posted a quarterly net loss of $1.062 billion compared to a loss of $299.3 million in the same quarter last year. Quarterly losses have been almost exactly double the company’s revenues over the past 12 months. As of June 30, the book value of the company’s 129,699 bitcoins was $1.988 billion, reflecting a cumulative impairment loss of $1.989 billion, the company said. The accumulated amount is now more than Bitcoin on the company’s balance sheet. “MicroStrategy’s unique strategy and consulting business requires full-time attention,” said Henry Elder, head of decentralized finance at Wave Financial. can focus on And companies can focus on making more money to buy more bitcoins. It’s basically doubled.”

MicroStrategy reports $1 billion loss, resigns as CEO to focus on Bitcoin

Source link MicroStrategy reports $1 billion loss, resigns as CEO to focus on Bitcoin

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