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MicroStrategy's Cash Flow Challenges Amid Bitcoin Growth
2024-08-01 23:55:08

MicroStrategy's Cash Flow Challenges Amid Bitcoin Growth

MicroStrategy, a Virginia-based Bitcoin-proxy, faces cash flow concerns with stagnant software revenue and a surge in Bitcoin holdings to $15 billion. Analysts worry about covering interest expenses and tax liabilities.

An anticipated quarterly loss and impairment charge on its Bitcoin holdings loom, along with a change in asset valuation methods. Despite a doubling in Bitcoin holdings' value, generating no income, MicroStrategy's shares soared 156%, outpacing Bitcoin's 50% increase.

Additionally, a Q2 net loss of $102.6M was reported due to a $180.1M impairment charge on 226,500 Bitcoins. The U.S. gained 206K jobs in June, and Mt. Gox initiated repayments in Bitcoin and Bitcoin Cash.

Related news on that topic:

Coinbase and Square Show Strong Q2 Performance Amid Market ... Volatility

Despite a decrease in trading volume, Coinbase's Q2 revenue exceeded expectations, driven by growth in subscription and services revenue fueled by higher USDC balances and asset prices. Additionally, the exchange is expanding into ETFs and tokenized funds. On the other hand, Square's Q2 earnings surpassed estimates, although revenue fell short due to lower Bitcoin sales. The company's focus on cost-cutting boosted EBITDA, with adjusted EPS rising significantly. Both Coinbase and Square demonstrated resilience in the face of market fluctuations, with Coinbase's shares rising after the revenue beat and Square's stock climbing on positive guidance. These performances highlight the companies' ability to navigate challenges and capitalize on opportunities in the evolving cryptocurrency landscape.

The press radar on this topic:

Yahoo Finance
1. August 2024 um 13:00

MicroStrategy Cash Flow Raises Some Eyebrows Amid Bitcoin Rally

Economy
Finance
MicroStrategy, a Bitcoin-proxy based in Tysons Corner, Virginia, faces cash flow challenges as its software revenue stagnates while its Bitcoin holdings have surged to $15 billion. Analysts are concerned about the company's ability to cover interest expenses from its convertible notes and potential tax liabilities from unrealized Bitcoin gains. MicroStrategy is expected to report a quarterly loss and an impairment charge on its Bitcoin holdings, and an upcoming accounting change will require the..
CoinDesk
1. August 2024 um 20:23

MicroStrategy Reports Q2 Loss; Bitcoin Holdings Rise to 226,500 U.S. Adds 206K Jobs in June; Mt. Gox Begins Repayments in Bitcoin and Bitcoin Cash

Economy
Finance
MicroStrategy reports Q2 net loss of $102.6M due to $180.1M impairment charge on 226,500 Bitcoin holdings worth $14.4B. U.S. adds 206K jobs in June; Mt. Gox begins repayments in Bitcoin and Bitcoin Cash. CEO Phong Le cites improved Bitcoin adoption; Revenue of $111.4M vs. $122M estimate. Shares fell 6.5% prior to earnings.
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