• MicroStrategy reported a record fourth quarter loss of $193.7 million due to its Bitcoin holdings
• The company has 132,500 Bitcoins valued at $1.840 billion with an average carrying value per Bitcoin of about $13,887
• MicroStrategy had impairment losses on Bitcoin totalling $197.6 million in the fourth quarter of 2022
MicroStrategy Reports Record Fourth Quarter Loss
MicroStrategy, a business intelligence application provider, has recorded its eighth consecutive quarterly loss in its Bitcoin holdings. According to MicroStrategy’s recently released Fourth Quarter 2022 Financial Report, the company has recorded a net loss of $193.7 million as opposed to the fourth quarter of 2021’s loss of $137.5 million. Comparing the fourth quarter of 2021 which had seen a net loss of $90.0 million or $8.43 per share on a diluted basis, the fourth quarter of 2022 saw a net loss of $249.7 million or $21.93 per share and was expected to be the only quarterly profit after the previous year’s report.
Impairment Losses Totalling $1.3 Billion
As it stands currently, MicroStrategy has 132,500 Bitcoins valued at 1$840 billion with an average carrying value per Bitcoin estimated at about 13$887 and impairment losses on Bitcoin totalling 197$6 million for this past quarter compared to 146$6 million in the same period last year market price per bitcoin is 16556$32 and an average cost of roughly 30 137$. To manage a 34$million tax loss, they sold 704 BTC for the first time during this period but increased their overall holdings by 2500 BTC following that sale later on during Q4 2020 financial results..
Michael Saylor States Positive Performance Compared To Popular Indices
Executive Chairman Michael Saylor stated during their earnings call that since adding Bitcoin into their portfolio they have outperformed popular indices and businesses like Google Apple Microsoft and Amazon all together as well as other tech companies around them putting them in front when it comes to investments both short term and long-term wise too .
Andrew Kang Clarifies Future BTC Trading Plans
In a statement Andrew Kang chief financial officer clarified that “We may consider pursuing additional transactions related to our investment in bitcoin from time-to-time including potentially purchasing more bitcoin or selling some or all our existing bitcoin” so there is no plan from their side yet to stop trading BTC anytime soon .
Overall it looks like despite recording their eighth consecutive quarterly loss due to holding onto bitcoins , Microstrategy are still looking strong when it comes down to investing into cryptocurrency as well as other tech companies outperforming major indices such as Google Apple Microsoft Amazon etc .