MicroStrategy Reports Quarter Loss: No Plan to Stop BTC Trading
• MicroStrategy reported a record fourth quarter loss of $193.7 million, up from the previous year’s $137.5 million.
• The company currently holds 132,500 Bitcoins valued at $1.84 billion and has suffered impairment losses totalling $197.6 million in the fourth quarter of 2022 versus $146.6 million in the same period the previous year.
• During the earnings call, Executive Chairman Michael Saylor stated that since adding Bitcoin, the company had outperformed popular indices and businesses like Google, Apple, Microsoft, and Amazon but provided no plans to stop BTC trading in future.
MicroStrategy Reports Record Fourth Quarter Loss
MicroStrategy, a business intelligence application provider, is making news after 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 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 – making it their biggest public Bitcoin holder since 2020 when analysts anticipated a net income of 10.7 million; their only quarterly profit since then..
MicroStrategy Reports Impairment Losses
As indicated by quarter four financial results , MicroStrategy currently has 132,500 Bitcoins valued at 1 840 billion dollars with an average carrying value per coin set at 13 887 dollars; 2 153 billion dollars worth impairments losses being incurred since acquisition . In addition to this , MicroStrategy saw an impairment loss on Bitcoin totalling 197 6million dollars for 4th Qtr 2022 compared to 146 6million during same period last year . The market value and original cost basis for Microstrategies holding were 3 993billion and 2 194billion respectively as December 31st , 2022 ; meaning there was an average price per bitcoin set at 16 556 32 US Dollars along with an average cost set around 30 137 US Dollars . To manage 34million dollar tax loses , 704 bitcoins were sold off last quarter however 2500 bitcoins added afterwards increased overall holdings .
Michael Saylor’s Statement
Executive Chairman Michael Saylor stated during earnings call that since adding Bitcoin , company had outperformed major indices such as Google ,Apple ,Microsoft & Amazon . This statement coming despite recent quarterly losses proving difficult for many companies globally due to pandemic & lowered profitability across global markets .
Clarification on Future Trading
In statement Andrew Kang (chief financial officer ) made clear that “We may consider pursuing additional transactions around our existing bitcoin position depending on market conditions & other factors ” suggesting further investments moving forward could be possible depending on factors outside companies control such as market liquidity & institutional investor demand amongst others .
Despite experiencing large losses over past few quarters due to current world situation & global economic woes ; microstrategie’s investment into cryptocurrency seems well placed with steady increase in price along with appreciation from executive chairman Michael saulor showing confidence from within organisation . Whilst not declaring any certain plans moving forward regarding further investments into cryptocurrency ; microstrategie has left door open for potential future moves should favourable conditions present themselves depending on various external factors beyond companies control