Micro-Strategy Q2 digital assets recorded a surge in impairment short-selling rate of US$917.8 million

On August 2, MicroStrategy announced its second-quarter financial results.

The financial report shows that MicroStrategy’s digital asset impairment loss in the second quarter of 2022 was $917.8 million, compared to $424.8 million in the second quarter of 2021.

As of June 30, 2022, MicroStrategy’s digital assets (consisting of approximately 129,699 bitcoins) had a book value of $1.988 billion, reflecting a cumulative impairment loss of $1.989 billion since the acquisition, averaging book value per bitcoin The amount is approximately $15,326. As of June 30, 2022, Micro Strategy’s Bitcoin raw cost basis and market value were $3.977 billion and $2.451 billion, respectively, reflecting an average cost per Bitcoin of approximately $30,664 and an average cost of $18,895.02 per Bitcoin market price.

At the same time, MicroStrategy announced the appointment of company president Phong Le as CEO, succeeding Michael Saylor. Saylor will continue to serve as the company’s executive chairman and will focus primarily on innovation and long-term company strategy, while continuing to oversee the company’s Bitcoin portfolio as head of the board’s investment committee. acquisition strategy.

The rapid growth since MicroStrategy’s 2020 purchase of Bitcoin is reflected in the stock price, which has risen all the way to $1,315 since 2020. However, as the crypto market tumbled, MicroStrategy’s stock price has retreated, falling nearly 80% since its highs.

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Despite this, Michael Saylor posted on social media that since MicroStrategy adopted Bitcoin assets (August 2020), the company’s valuation has increased by 730%, and its stock price has doubled, and Bitcoin still outperforms many traditional assets.odqwihtvVYYTLKFgsmSXlFaOr0NDdQUi0EU4o2MG.png

Notably, MicroStrategy stock has a record short-to-short ratio of 51%, and investors skeptical of the company’s Bitcoin strategy believe its recent rally won’t last.

Short positions in MicroStrategy represent a record 51% of shares outstanding, with a notional value of $1.35 billion, according to financial analytics firm S3 Partners. Short selling on the stock has surged by 1.2 million shares in the past 30 days alone to an all-time high of 4.73 million shares, S3 said.

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