Q2 2022 Cryptocurrency Report Highlights Terra’s Collapse and Capital Exiting the Crypto Ecosystem

July 23, 2022 Bitcoin.com

Crypto soars to account for 73% of trading commissions on eToro in Q2

August 26, 2021 Coin Telegraph

According to eToro’s Q2 report, crypto drove the 125% surge in trading volumes in Q2, with crypto representing 73% of total trading commissions.

Crypto grew to represent 73% of trading commissions on popular retail trading app eToro in the second quarter.

eToro announced its Q2 results on Aug. 25, with the firm posting $362 million worth of total trading commissions and reporting its assets under administration had reached $9.4 billion.

In an investor update released on the same day, the firm outlined that crypto-assets accounted for 73%, or $264.26 million of commissions, which marked a massive 2259% increase compared to the $11.2 million reported in Q2 2020.

Overall trading volumes are up 125% on Q2 2020, with Yoni Assia, the CEO and co-founder of eToro noting in the announcement that the growth was “underpinned by long-term secular trends in investor behavior” and enabled by providing “simple access” to crypto via a user-friendly mobile interface along with financial education. The announcement read:

“Cryptoassets drove total commissions in the second quarter of 2021 reflecting strong interest from retail investors in crypto markets. Interest was diversified across the cryptos offered by eToro with the highest trading volumes in BTC, XRP, ETH, ADA and DOGE.”

The platform’s trading activity has evolved drastically over the past twelve months. In Q2 2020 data shows crypto represented just 7% of commissions, while commodities and equities dominated with 45% and 41% respectively. By Q2 this year, commodities only accounted for only 7% and equities represented 18%.

eToro also posted large increases in other areas in Q2, as net trading income totaled $291 million which marked a growth of 136% compared to last year. The user base also saw a significant boost, with 2.6 million new registered users, up 121% compared to Q2 2020.

The platform is set to go public on the Nasdaq exchange via a $10 billion special purpose acquisition deal (SPAC) slated to close this quarter.

Despite posting impressive growth, the firm reported negative net income of $89 million, which was attributed to a “non-cash charge of $71 million in stock-based compensation” to employees and $36 million in transaction costs related to the SPAC merge with FinTech Acquisition Corp. V

Q2 Earnings Show Coinbase Raked in $2 Billion — Firm Forms Partnerships With Elon Musk, PNC Bank, Spacex

August 11, 2021 Bitcoin.com

MicroStrategy pledges to buy more BTC despite paper loss on its holdings of $424.8M in Q2

July 30, 2021 Coin Telegraph

MicroStrategy pledges to buy more BTC despite paper loss on its holdings of 4.8M in Q2

Bitcoin

As of June 30, 2021 MicoStrategy held an approximated 105,085 BTC with a carrying value of $2.051 billion, at a total impairment loss of $689.6 million since acquisition of the digital asset.

Business intelligence and mobile software firm MicroStrategy has pledged to buy more Bitcoin despite reporting impairment losses of $424.8 million in Q2.

This is only a paper loss however based on the price of Bitcoin at the end of the quarter and does not reflect a realized loss. Depending on how you add the figures up, MicroStrategy appears to have made nearly a billion dollars more from Bitcoin than it spent.

Along with CEO Michael Saylor’s fervent belief in Bitcoin, that may be why it’s resolved to add more Bitcoin to its reserves going forward. The report stated:

“We continue to be pleased by the results of the implementation of our digital asset strategy. Our latest capital raise allowed us to expand our digital holdings, which now exceed 105,000 bitcoins. Going forward, we intend to continue to deploy additional capital into our digital asset strategy."

The Q2 report was announced earlier today. As of June 30, 2021 MicoStrategy held an approximate 105,085 BTC with a carrying value of $2.051 billion, at an impairment loss of $689.6 million since acquisition. The average carrying amount per Bitcoin was an estimated $19,518.

Earlier this week Elon Musk’s Tesla also published a Q2 report which showed a $23 million impairment loss on its Bitcoin holdings.

As both firms categorize Bitcoin as an “intangible asset,” accounting rules mandate that they must report an impairment loss when the asset’s price drops below its cost basis. However they are not required to report price appreciation in the specified asset until the position is realized through a sale.

The digital asset figures were calculated using Generally Accepted Accounting Principles (GAAP) — a collection of commonly accepted accounting rules used for financial reporting. The firm also provided non-GAAP calculations, which in this report exclude the “impact of share-based compensation expense and impairment losses and gains on sale from intangible assets.”

Report: Here’s how much Musk and Saylor’s tweets influenced crypto prices in Q2

The non-GAAP figures paint a different picture for MicroStrategy’s digital asset holdings, with the BTC cost basis at $2.741 billion but its market value is $3.653 billion, which reflects an average cost per BTC at $26,080 and market price of $34,763 as of June 30.

MicroStrategy Performance
Jul. 27, 2021

Since the start of their #Bitcoin treasury program:$MSTR +406%$BTC +227%$NASDAQ +39.1% pic.twitter.com/Ti5Hr3PlOH
— ecoinometrics (@ecoinometrics) July 27, 2021

Total revenues for the second quarter totaled $125.4 million, which was a 13.4% increase compared to Q2 of 2020. Microstrategy’s Gross profit equated to $102.3 million and represented a gross margin of 81.6%, which was a minor increase of 4.2% compared to the year prior. Overall MicroStrategy reported a second-quarter loss of $299.3 million, compared to a $3 million profit in the same quarter last year.

Saylor and MicroStrategy appear to be all-in on Bitcoin at this stage, and both have continued to accumulate the asset despite the crypto downturn that began in May, as the strategy is to hold the asset long term. The CEO did recently note however, that if the price of Bitcoin is lower than what it is today four years from now, he will reconsider his strategy.

MicroStrategy Announces Second Quarter 2021 Financial Results.

Join @MicroStrategy management to discuss $MSTR results at our Live Video Webinar today at 5pm EDT.https://t.co/Qch83Rj0GW
— Michael Saylor (@michael_saylor) July 29, 2021

Tesla reports record $1B income for Q2 despite $23M impairment loss on BTC

July 27, 2021 Coin Telegraph

Tesla reports record B income for Q2 despite M impairment loss on BTC

Bitcoin

Tesla’s latest earnings report showed that the firm conducted no digital asset purchases or sales in Q2, but reported an impairment loss of $23 million on its BTC holdings.

Electric vehicle and clean energy firm, Tesla, has reported $1.14 billion in net income for the second quarter.

The firm’s July 26 earnings report showed that total revenue grew by 98% year on year (YOY) for Q2, increasing from $6 billion in 2020 to $11.9 billion this year. Tesla attributed the bulk of its growth to a surge in demand for its electric vehicles, stating:

“In the second quarter of 2021, we broke new and notable records. We produced and delivered over 200,000 vehicles, achieved an operating margin of 11.0%, and exceeded $1B of GAAP net income for the first time in our history.”

The firm also generated quarterly profits of $1.02 per share.

The firm stated that total revenue was partially offset by growth in operating expenses and a Bitcoin-related impairment loss of $23 million.

As Tesla holds its Bitcoin as an “intangible asset,” accounting rules mandate that the firm must report an impairment loss when the asset’s price drops below its cost basis. However, Tesla is not required to report pricappreciations in the underlying asset until the position is realized through a sale.

The report also shows that Tesla didn’t buy or sell any digital assets in Q2. As such, Tesla’s sole crypto purchase remains its $1.5 billion BTC buy in Q1, with the firm having also cashing out $272 million during the same quarter.

Tesla’s $1.14 billion in net income was calculated using Generally Accepted Accounting Principles (GAAP) — a collection of commonly accepted accounting rules used for financial reporting such as expense matching and revenue recognition.

Non-GAAP figures, which exclude irregular or non-cash expenses such as depreciation, one-time balance sheet adjustments, and acquisitions, estimate the firm took in $1.6 billion with a profit of $1.45 per share.

Speaking at the virtual conference “The ₿ Word” on July 22 Tesla’s CEO, Elon Musk quashed rumors that the firm may sell its holdings in the near future, also teasing that it may resume accepting BTC payments for its electric vehicles.

Musk also revealed for the first time that his aerospace firm SpaceX holds BTC, emphasizing that Tesla and SpaceX have no plans to sell:

“We’re not selling any Bitcoin, nor am I selling anything personally or nor is SpaceX selling any Bitcoin.”

Q2 report

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