MicroStrategy Reports Losses in Third Quarter Again

Forex - Bitcoin hedge fund representative MicroStrategy Inc. reported a third consecutive quarterly loss after taking a impairment charge against the value of its approximately $18 billion cryptocurrency portfolio.

Despite the loss, MicroStrategy announced plans to raise a total of $42 billion over the next three years, consisting of $21 billion in equity and $21 billion in fixed-income securities, to purchase more Bitcoin.

The company's shares lost about 4% in after-hours trading.

President and CEO Phong Le stated, "We continue to focus on enhancing the value created for our shareholders by capitalizing on the digital transformation of capital. As a Bitcoin treasury company, we plan to use additional capital to purchase more Bitcoin as a treasury reserve asset."

Third-quarter revenue from the software business fell 10% to $116.1 million, missing analysts' estimates of $122.5 million. The net loss was $340 million, compared to a loss of $143.4 million in the previous quarter. MicroStrategy recorded an impairment charge of $412 million in the last quarter.