The corporation also reported a $34 million loss on its first-ever Bitcoin sale during the previous quarter but stated the transaction was made to harvest a tax loss.
On February 2, MicroStrategy announced its financial results for the fourth quarter and full year of 2022, revealing that the company had taken impairment charges on its BTC holdings of almost $1.3 billion (after accounting for gains on sale).
Despite the company’s paper losses, MicroStrategy CFO Andrew Kang stayed positive on the company’s earnings call on February 2.
He contrasted the stock price increase of 117% from August 2020 to the 98% increase of Bitcoin and said:
Bitcoin is the only place where a large investment firm may feel completely secure. If you’re an investor, your money is safest in Bitcoin since it’s the only digital commodity that’s widely accepted.
According to Kang, as of the end of 2022, MicroStrategy has accumulated 132,500 BTC worth $1.84 billion. Of that total, 14,890 BTC were held by the company itself, while the rest were held by MacroStrategy LLC, the company’s completely owned subsidiary.
The first Bitcoins ever offered by the corporation were made available to investors late last year. Kang stated the corporation “raised our net holdings by 2500 Bitcoin throughout the quarter,” while selling 704 BTC to generate a tax loss of almost $34 million.
According to reports, MicroStrategy’s fourth-quarter sales of $132.6 billion surpassed Wall Street’s projections.
After-hours trading on Yahoo Finance shows that MicroStrategy’s share price has dropped by more than 4% as of this writing.
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