MicroStrategy, a software analytics company, reported a paper loss on its Bitcoin holdings of over a billion dollars in 2022, but the company insists it has no intentions to cease trading the virtual currency. On February 2, MicroStrategy disclosed its Q4 and year-end financial results for 2022, revealing that the reported impairment charges on its BTC holdings, net of gains on sale, were close to $1.3 billion for the entire 2022 financial year.
The success of Bitcoin is the most significant benchmark, according to MicroStrategy co-founder Michael Saylor, who stated this during the conference call. The company monitors its stock performance against a plethora of other benchmarks.” Saylor said that MicroStrategy had “been capable of outperforming Bitcoin as one of the indices” over the course of the period when the company initially disclosed that it was purchasing Bitcoin in August 2020.
MicroStrategy Is Not About To Be Done With Bitcoin
According to Kang, as of December 31, 2022, the company controlled a total of 132,500 BTC, valued at $1.84 billion. Out of that, the company held 14,890 BTC on its own behalf and the rest was held by a subsidiary. For the first time, the business sold some of its Bitcoin holdings late last year. Kang said that the company had managed to raise the net holdings by close to 2500 Bitcoin throughout this quarter” despite the sale of the 704 BTC, which was done to realize a tax loss of almost $34 million.
According to reports, MicroStrategy’s total sales for the fourth quarter exceeded Wall Street projections and came in at $132.6 billion. It lost $21.93 per share in the fourth quarter. According to data from Yahoo Finance, MicroStrategy’s stock price had decreased by more than 4% as of the time of writing.
