Kiffmeister’s #Fintech Daily Digest (10/30/2021)

Bitcoin Accounting Zaps Millions From MicroStrategy’s Income

“MicroStrategy massive Bitcoin bet increased in value by more than $1.3 billion during the third quarter. But accounting rules require MicroStrategy to take a writedown if the tokens it buys fall — even only temporarily — below the price it paid for them. So, for the third quarter, MicroStrategy booked a $65 million writedown, leading to an unprofitable quarter.” [Read more] Tesla’s income statement was similarly dinged – it took an an impairment charge of $51 million in the third quarter on its Bitcoin holdings, even though the crypto-asset gained roughly 30% during the period. 

DeFi Protocol Cream Finance Loses $130 Million in Latest Crypto Hack

DeFi protocol Cream Finance suffered yet another hack this year after an exploit stole at least $130 million in what could be one of the largest thefts in decentralized finance. Cream was involved in similar attacks that stole nearly $38 million in February and almost $19 million in August. Meanwhile, a hacker stole $600 million worth of crypto tokens from the PolyNetwork protocol in August in what is considered to be the largest DeFi hack ever. [Read more]

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