• MicroStrategy recorded a net loss of $249.7 million in Q4 2022, with its revenue declining by 1.5%.
• The company incurred an impairment charge of $197.6 million on its BTC holdings in the last quarter.
• MicroStrategy has purchased 301 more bitcoins between July and October last year, increasing its holdings to 130,000 BTC.
MicroStrategy Records 8th Consecutive Quarterly Loss
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.
$198 Million Impairment Charge On BTC Stash
MicroStrategy incurred an impairment charge of $197.6 million on its BTC holdings in the last quarter; significantly higher than the impairment of $727,000 incurred in the previous quarter due to bitcoin’s relatively stable valuation at that time. The company also purchased 301 more bitcoins between July and October last year – increasing its holdings to 130,000 BTC – and later bought 810 more coins despite selling some 704 BTC for tax payments previously.
Company Still Bullish On Bitcoin Despite Losses
Despite incurring losses due to the impairment charges on their bitcoin stash as well as other expenses related to legal fees and employee compensation, MicroStrategy is still bullish on Bitcoin as they continue adding more coins into their portfolio each quarter while enjoying decent returns from their investment thanks to bitcoin’s rally this year so far (over 40%).
Prior Year Performance
In comparison with prior years‘ performance: In 2020, the company reported a net loss of over half a billion dollars ($506 million) compared with profits worth over four hundred thousand dollars ($404K) reported for 2019; revenues for 2020 were also up 27% from 2019 (from about one hundred five million dollars ($105M) up until two hundred thirty-four million dollars ($234M)) due mainly from customers‘ subscriptions fees as well as service contracts and other services rendered throughout the period under review .
Conclusion
Overall it appears that despite incurring losses due to impairment charges on their bitcoin stash this quarter – which is expected considering how volatile cryptocurrencies can be -MicroStrategy is still maintaining an overall positive outlook towards crypto investments judging by their continuing acquisition and accumulation of digital assets over time coupled with good returns in recent times; these developments should help secure future profitability for them going forward if they maintain this level of commitment towards cryptocurrency investments