MicroStrategy expects to report an $8.32 billion loss for the second quarter ended June 30. An $8.31 billion non-cash impairment charge accounts for the vast majority of the loss. This charge resulted from Bitcoin’s price falling below the company’s cost basis. MicroStrategy will also record a full valuation allowance against deferred tax assets related to the loss.
The company sold 3,588 bitcoins for approximately $216 million between June 29 and July 5. These proceeds funded preferred stock dividends and replenished U.S. dollar reserves. Cash reserves stood at $2.55 billion as of July 5. MicroStrategy currently holds 843,775 bitcoins following the sales.
CFO Andrew Kang was designated as the principal accounting officer. This appointment follows the retirement of the former chief accounting officer.