MicroStrategy, a leading software analytics company, experienced a significant setback in its Bitcoin holdings last year. Despite a paper loss of over a billion dollars, the company remains committed to trading the digital currency.
In its recent 2022 Q4 and year-end earnings report, MicroStrategy revealed that its Bitcoin holdings saw a recorded impairment charge of nearly $1.3 billion in the year 2022. However, the company remains optimistic and has no plans to abandon its investments in the popular digital asset.
Despite the recent financial setbacks, MicroStrategy’s CFO, Andrew Kang, expressed during a recent earnings call on February 2nd:
“We may consider pursuing additional transactions that may take advantage of the volatility in Bitcoin prices, or other market dislocations that are consistent with our long-term Bitcoin strategy.”
Credits: CoinTelegraph
During a recent call, MicroStrategy Co-Founder Michael Saylor shared the company’s approach to evaluating its stock performance. He explained that they consider various benchmarks, but the most significant benchmark for them is the performance of Bitcoin.
Saylor added, since MicroStrategy’s initial announcement of their investment in Bitcoin back in August 2020, the company has seen impressive results, outpacing the performance of Bitcoin as an investment.
According to him, the company’s stock has seen a remarkable increase of 117% since August 2020, outpacing Bitcoin’s growth of 98%.
“The only real safe haven for an institutional investor is Bitcoin. Bitcoin is the only universally acknowledged digital commodity, and so if you’re an investor, Bitcoin is your safe haven in this regard.”
Credits: CoinTelegraph
According to Kang, MicroStrategy had accumulated a massive 132,500 bitcoins worth $1.84 billion by the end of 2022. Of this total, the company directly held 14,890 bitcoins, while the rest was managed by its subsidiary, MacroStrategy LLC.
Recently, MicroStrategy made its first-ever sale of a portion of its bitcoin holdings. Kang revealed that the company sold 704 bitcoins in order to reap a tax loss of around $34 million. Despite the sale, the company still managed to increase its net holdings by 2,500 bitcoins during the quarter.
MicroStrategy’s financial results for the year’s final quarter have been revealed, with the company reporting a total revenue of $132.6 billion.
This impressive figure exceeded the expectations set by Wall Street analysts. However, the company did report a loss per share of $21.93 in Q4.
At the time of writing, it looks like the news hasn’t been well received by investors, with MicroStrategy’s stock price dropping by over 4% during after-hours trading, as reported by Yahoo Finance.
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