MicroStrategy Won’t Stop Trading Bitcoin (BTC) Despite a Paper Loss of $1.3 Billion
MicroStrategy, the biggest corporate holder of Bitcoin (BTC), reported an impairment charge of $1.3 billion on its BTC holdings in 2022 as prices of crypto plummeted, but the company has said it won’t stop trading Bitcoin. In its earnings report for the fourth quarter of 2022, software analytics company MicroStrategy reported impairment charges on its BTC holding hit $197.6 million, up from a $727,000 charge in Q3. For 2022, the company’s impairment charge hit $1.3 billion. Paper loss or impairment charge shows the decline in the value of an investment but doesn’t involve a real loss of cash. MicroStrategy currently holds 132,500 bitcoins at a total acquisition cost of roughly $4 billion. The paper loss represents the decline in the price of BTC versus the price at which it was acquired. Despite the huge impairment charges, MicroStrategy’s Chief Financial Officer Andrew Kang said the company’s “corporate strategy and conviction in acquiring, holding, and growing our bitcoin position.” Further affirming this stance over an earnings call, chairman Michael Saylor said despite the loss, the performance of MicroStrategy stock since the company began buying Bitcoin is better than major indices and the likes of Google, Apple, Microsoft, and Amazon. The continuous purchase of BTC by MicroStrategy reflects the company’s belief that Bitcoin is an effective long-term hedge against inflation. To understand Saylor’s view on Bitcoin, read: Michael Saylor and the Philosophy of Bitcoin Maximalism Top 10 Crazy Things Michael Saylor Said About Bitcoin More on MicroStrategy’s Bitcoin push is covered in: MicroStrategy to Bring Lightning Solutions in 2023 to Contribute to the Ecosystem – Michael SaylorMicroStrategy’s Paper Loss Hit $1.3 Billion
MicroStrategy Won’t Stop Trading Bitcoin
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Text source: DailyCoin.com
