MicroStrategy (MSTR) reported a net loss of $102.6 million, equivalent to $5.74 per share for the second quarter, a stark contrast to the $22.2 million income or $1.52 per share recorded the previous year. This downturn was primarily due to a substantial impairment charge on its bitcoin holdings, amounting to $180.1 million, compared to $24.1 million in the same period last year.

Helmed by Executive Chairman Michael Saylor, the company disclosed that as of July 31, it held 226,500 bitcoins, a slight increase since the last acquisition announced in mid-June. These 226,500 bitcoins were procured at a cumulative expenditure of $8.3 billion, averaging $36,821 per token. At the current valuation of $63,500 per bitcoin, these holdings are worth approximately $14.4 billion.

Read more: Bitcoin Price to Surge $13M by 2045: Michael Saylor

“On the adoption front, we are extremely optimistic with the improved understanding of bitcoin and the increasing support for the ecosystem from bipartisan politicians and institutions on display at the Bitcoin 2024 Conference in Nashville,” said CEO Phong Le in the earnings release.

The impairment charge denotes the difference in value of the company’s bitcoin holdings from their purchase price. While new accounting regulations permit firms to mark to market their digital asset holdings, compliance is not yet mandatory.

Operationally, MicroStrategy reported $111.4 million in revenue, falling short of the $122 million anticipated by analysts, according to FactSet data.

Shares of MicroStrategy plummeted 6.5% during regular trading hours on Thursday, coinciding with a sharp decline in both stock and cryptocurrency markets. Despite this, MSTR has more than tripled in value over the past year, mirroring the more than doubling of bitcoin’s price during the same timeframe.

In a strategic move to increase accessibility for investors and employees, the Nasdaq-listed software firm announced a 10-for-1 stock split in July. This split took effect at the close of business today.

This report highlights MicroStrategy’s ongoing commitment to bitcoin acquisition amidst fluctuating market conditions and underscores the broader implications of bitcoin’s market valuation on corporate financials.