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SEC filingSofter crypto market conditions drove a sharp revenue decline and GAAP losses, though operating cash flow turned positive and management announced a restructuring to align costs.
Operating income was a loss of $21.4 million, compared to income of $705.8 million in the prior year, resulting in an operating margin of -1.5%. The swing to a loss was driven by the significant revenue decline, while operating expenses did not decrease proportionally. Net income was a loss of $394.1 million, compared to net income of $65.6 million in the prior year. The net loss included unrealized losses on crypto assets held for investment, which are primarily long-term holdings and in certain cases fulfill capital requirements set by regulators. Diluted earnings per share was -$1.49, compared to $0.24 in the prior year.
Management announced a restructuring plan to better align operating expenses with current market conditions and optimize operations for the AI era. The plan is expected to help the company navigate the softer market environment and position for future growth. We anticipate this plan will help us better align our operating expenses with current market conditions and optimize our operations for the AI era.