MicroStrategy reports fourth quarter results Thursday with the company expected to turn a profit after several down quarters even as revenue comes in slightly lower than a year earlier.
The software firm, better known in recent years for its bet on bitcoin, is expected to report revenue of $131 million for the fourth quarter, according to the average estimate compiled by FactSet. The compares to $134.5 million a year earlier.
Net income is estimated at $10.7 million, which would be the first time MicroStrategy has posted a profit since the fourth quarter of 2020.
A revenue decline would halt a string of three quarters of growth, but would come amid a tough quarter for the crypto world that saw FTX collapse and bitcoin drop to around $17,000 compared to its November 2021 high of $69,000.
Bitcoin seller
MicroStrategy, which ended the third quarter with 130,000 bitcoin, sold the cryptocurrency for the first time last month, liquidating 704 bitcoin worth $11.8 million at the time of sale. But it turned around and bought 810 BTC two days later, adding to the 2,395 BTC acquired between Nov. 1 and Dec. 24.
“MicroStrategy plans to carry back the capital losses resulting from this transaction against previous capital gains, to the extent such carrybacks are available under the federal income tax laws currently in effect,” the company said at the time.
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Source: https://www.theblock.co/post/206299/microstrategy-expected-to-report-profit-despite-down-quarter-for-crypto-preview?utm_source=rss&utm_medium=rss