MicroStrategy Records 8th Consecutive Quarterly Loss After $198M BTC Impairment Charge
American business intelligence company MicroStrategy has recorded another quarterly loss after calculating the value of its Bitcoin portfolio.
According to a Bloomberg report, MicroStrategy recorded a net loss of $249.7 million, narrowed down to $21.93 a share, in Q4 2022. The firm’s revenue declined by 1.5% to $132.6 million, going lower than the estimated drop.
MicroStrategy Records $198M Impairment Charge
The Virginia-based company incurred an impairment charge of $197.6 million on its BTC holdings in the last quarter. The value is significantly higher than the impairment of $727,000 incurred in the previous quarter.
As reported by CryptoPotato, MicroStrategy disclosed that bitcoin’s relatively stable valuation in Q3 contributed to the minimal impairment charge. The company also purchased 301 more bitcoins between July and October last year, increasing its holdings to 130,000 BTC.
By the end of Q4, the business intelligence firm had amassed 132,500 bitcoins, sticking to its goal of accumulating the crypto asset. Although the company sold some 704 BTC to foot its tax charges for the first time, it eventually bought 810 BTC a couple of days later.
Fortunately, due to bitcoin’s rally of over 40% since the beginning of the year, MicroStrategy’s BTC stash has increased by about $850 million. Its shares have also more than doubled to roughly $290 from an over 60% plunge.
MicroStrategy Remains Bitcoin-Friendly
Amidst the rollercoaster of profits and losses plaguing MicroStrategy since its first bitcoin purchase in 2020, the company is still bent on sticking to the leading cryptocurrency while exploring its potential.
CryptoPotato reported late last year that the business intelligence firm was planning to launch applications powered by the Bitcoin Lightning Network. The goal was disclosed by co-founder and former chief executive Michael Saylor in late December.
Recall that Saylor stepped down from his role as CEO to focus on MicroStrategy’s Bitcoin holding strategy. The BTC proponent said the applications would enable users to process more efficient bitcoin transactions and enhance internet security.
The post MicroStrategy Records 8th Consecutive Quarterly Loss After $198M BTC Impairment Charge appeared first on CryptoPotato.
Filed under: Bitcoin - @ February 5, 2023 3:52 pm