Software analytics platform MicroStrategy sustained a paper loss worth over a billion dollars on its Bitcoin holdings in 2022. It is believed that the company, despite the drawback, doesn’t plan to conclude trading of the digital asset, as reported by Cointelegraph.
According to Cointelegraph, on February 2, 2023, MicroStrategy unveiled its 2022 Q4 and year-end earnings which showed impairment charges regarding BTC holdings, net of gains on sale, to be around $1.3 billion for 2022.
“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,” Andrew Kang, chief financial officer, MicroStrategy, stated.
On the basis of information by Cointelegraph, Michael Saylor, co-founder, MicroStrategy, mentioned that the company utilises “a number of different benchmarks” to compute its stock performance, highlighting “the most important benchmark is Bitcoin’s performance.” “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,” Saylor said.
Moreover, Cointelegraph noted that previously, the company conducted the sale of a certain part of its Bitcoin holdings for the first time. Reportedly, MicroStrategy’s estimated revenue for Q4 was $132.6 billion. Sources stated that the company’s Q4 loss per share was $21.93.
(With insights from Cointelegraph)