Strategy (MSTR) Hit with $8.3 Billion Loss... Will Bitcoin Face the Aftermath?

▲ Strategy (MSTR), Bitcoin (BTC)/AI Generated Image

Strategy (MSTR) recorded a loss of $8.32 billion in digital assets in Q2. Robinhood and Coinbase are also set to announce their earnings this week.

According to crypto media outlet BeInCrypto on July 28 (local time), Robinhood (HOOD) will announce its Q2 earnings on July 29. Coinbase (COIN) and Strategy will release their earnings after market close on July 30. The earnings announcements for these three companies are clustered within approximately 30 hours.

Robinhood's Q2 earnings per share (EPS) forecast is $0.39, a 7.1% decrease from the same period last year. Revenue is projected to increase by 23.6% to $1.22 billion. Crypto trading revenue is forecasted to decrease by 47.8% to $83.5 million. Robinhood reduced its workforce by 10% in June and will reflect approximately $20 million in severance and employee benefits expenses in Q2. Stock-based compensation expenses are also expected to be around $8 million.

Coinbase's Q2 EPS forecast is $0.15. Revenue is projected to decrease by 12.8% from the same period last year to $1.31 billion. Coinbase recorded a net loss of $394 million in Q1, marking two consecutive quarters of losses. The company reduced its workforce by 14% and provided Q2 subscription and services revenue guidance of $565 million to $645 million.

Strategy disclosed a digital asset loss of $8.32 billion in Q2. Realized losses amounted to $900,000. As of June 30, the fair value of its Bitcoin (BTC) holdings was $49.67 billion, which is $14.27 billion lower than the acquisition cost of $63.94 billion. Strategy sold 1,363 BTC for $80.8 million between June 29 and 30, at an average selling price of $59,256.

Wall Street's price targets also varied widely. Coinbase's target price ranged from $99 to $330. For Strategy, Citi lowered its price target from $260 to $136, and Mizuho also downgraded it from $340 to $213. For the earnings announcements of these three companies, not only revenue and profit/loss but also future performance outlooks were cited as key variables that would determine stock price movements.

[Key Article Summary]

-Strategy recorded a loss of $8.32 billion in digital assets in Q2.

-Robinhood's crypto trading revenue is projected to decrease by 47.8% to $83.5 million.

-Coinbase's Q2 revenue is expected to decrease by 12.8% to $1.31 billion.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*