Investments

9 Months Ended

Sep. 30, 2020

Investments, All Other Investments [Abstract]

Investments

Investments

In June 2019, CrowdStrike Holdings, Inc. ("CrowdStrike"), an entity in which Rackspace US, Inc. held an equity investment, completed an initial public offering and became a publicly-traded company. Prior to the date of CrowdStrike's initial public offering, our investment in CrowdStrike had a carrying value of $10.0 million and was accounted for as an equity investment without a readily determinable fair value. With the availability of observable price changes following the completion of CrowdStrike's initial public offering, our investment in CrowdStrike was measured at fair value on a prospective basis using the end of period quoted stock price, which is classified as a Level 1 input within the fair value hierarchy. In December 2019, Rackspace US, Inc. sold the investment in CrowdStrike for $106.9 million in cash proceeds.

We hold other equity investments that do not have readily determinable fair values. The aggregate carrying value of these other equity investments is immaterial.

For the three months ended September 30, 2019, we recognized a loss on investment activity of $22.0 million, which was entirely due to the decrease in the fair value of the CrowdStrike investment. For the nine months ended September 30, 2019, we recognized a net gain on investment activity of $121.4 million which was primarily comprised of a $118.8 million unrealized gain related to the increase in the fair value of the CrowdStrike investment and a $2.6 million realized gain recognized upon the receipt of proceeds related to the 2017 sale of an equity investment. For the nine months ended September 30, 2020, we recognized a net gain on investment activity of $0.9 million, primarily comprised of a realized gain upon the receipt of proceeds related to the 2017 sale of an equity investment. There was minimal activity for the three months ended September 30, 2020.