Language
Change font
A
A
A
A
Share
TOP
Most read
Language
Change font
A
A
A
A
Share
Strategy announced its first performance under the virtual asset accounting standards changed by the U.S. Financial Accounting Standards Board (FASB). Strategy recorded a deficit due to the impact of falling Bitcoin prices.
On the 1st (local time), Strategy reported a net loss of $4.217 billion in the first quarter.
Strategy’s first-quarter earnings announcement received significant market attention as it was the first performance since the FASB virtual asset accounting standard was changed.
Last year, the FASB issued an accounting standard to reflect the real-time market value of virtual assets such as Bitcoin in the statement of financial position.
Until now, Strategy immediately recognized Bitcoin as an impairment loss if its value fell, and even if its value rose, the increase was not reflected in the statement of financial position until the time of sale.
As a result, the strategy has recorded excessive losses at each earnings release due to impairment losses. There was an expectation that if the value of the bitcoin market was recognized, the strategy could also record a net profit.
However, the strategy increased its loss despite reflecting market value as bitcoin prices faltered in the first quarter.
According to Strategy, the Bitcoin market price was reflected at $82,445 as of the end of the first quarter.
As of December 31 last year, the market price was $93,390. Strategy eventually reflected $5.9 billion in unrealized losses in its income statement.
An unrealized loss of $4.9 billion in existing bitcoin holdings occurred, and a unrealized loss of $1 billion in additional bitcoin purchased during the first quarter.
However, Strategy predicted that in the second quarter, it will be able to produce an improved performance compared to the first quarter due to the rise in Bitcoin prices.
Bitcoin rose to its highest level in about 70 days on the 2nd, rising to $97,437.96 at one point.
Strategy expects a $6.7 billion unrealized profit, assuming the price of Bitcoin is $95,000 at the end of the second quarter.
Meanwhile, Strategy also announced a plan to raise $21 billion worth of common stock. This fund will also be used to purchase Bitcoin.
Strategy also announced the “Bitcoin Yield,” which represents an increase in Bitcoin holdings per share. Strategy’s Bitcoin yield reached 11% in the first quarter, it said.
Strategy also raised its long-term bitcoin yield target to 25% from 15%.
Announcement of 11% achieved during the period. It also raised its long-term Bitcoin yield target from 15% to 25%.
Strategy traded lower by 0.81% in the after-market after the company reported Q1 results.
2025-05-01 15:53:28
2025-04-30 11:28:41
2025-05-02 06:34:46
2025-04-30 18:51:51
2025-05-01 17:50:14
2025-05-01 09:00:00
2025-05-01 10:59:13
2025-05-01 19:23:59
2025-04-30 08:53:08
2025-05-02 13:40:01
※ This service is provided by machine translation tool, NAVER papago.
Maeil Business Newpaper(MK) provides these translations “as they are” and makes no warranties of any kind, either explicitly or implicitly, regarding accuracy, reliability and marketability, suitability for a particular purpose, etc. of translation. Please be informed that the content provided may not be translated accurately due to limitations in machine translation before using this service.
Copyright (c) 매경에이엑스. Maeil Business News Korea & mk.co.kr, All rights reserved.
Prohibition of unauthorized reproduction, redistribution, and use of AI learning
Strategy announced its first performance under the virtual asset accounting standards changed by the.. – 매일경제
