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Software analytics company MicroStrategy recorded a paper loss of over a billion dollars on its Bitcoin (
$76,538.00 ) (BTC) holdings in 2022 but says it has no plans to stop trading the digital asset.
MicroStrategy released its 2022 Q4 and year-end earnings on Feb. 2 showing the recorded impairment charges on its BTC holdings, net of gains on sale, was nearly $1.3 billion over the full year 2022.
Despite the paper losses, on a Feb. 2 earnings call MicroStrategy’s chief financial officer, Andrew Kang, said:
“We may consider pursuing additional transactions that may take advantage of the volatility in Bitcoin ( $76,538.00 ) prices, or other market dislocations that are consistent with our long-term Bitcoin ( $76,538.00 ) strategy.”
On the call, MicroStrategy co-founder Michael Saylor said the company measures its stock performance against “a number of different benchmarks” saying “the most important benchmark is Bitcoin ( $76,538.00 ) ’s performance.”
Saylor added since MicroStrategy first announced it was buying Bitcoin ( $76,538.00 ) in Aug. 2020 its “been able to outperform Bitcoin ( $76,538.00 ) as an index” over that time.
In its Q4 earnings presentation, the company shared its own analysis of its stock price performance compared to Bitcoin ( $76,538.00 ) , indices and its competitors. Image: MicroStrategy
He said the company’s stock is up 117% since Aug. 2020 compared to Bitcoin ( $76,538.00 ) ’s gain of 98%, and added:
“The only real safe haven for an institutional investor is Bitcoin ( $76,538.00 ) . Bitcoin ( $76,538.00 ) is the only universally acknowledged digital commodity, and so if you’re an investor, Bitcoin ( $76,538.00 ) is your safe haven in this regard.”
Kang stated MicroStrategy held a total of 132,500 BTC worth $1.84 billion as of Dec. 31, 2022. 14,890 BTC were held directly by the business with the remaining held in its subsidiary MacroStrategy LLC.
Related: US institutions account for 85% of Bitcoin ( $76,538.00 ) buying in ‘very positive sign’ — Matrixport
Late last year the company sold a portion of its Bitcoin ( $76,538.00 ) holdings for the first time. Discussing the sale, Kang said the 704 BTC were sold to harvest a tax loss of around $34 million.
He added even with the sale, the company “increased our net holdings by 2500 Bitcoin ( $76,538.00 ) during the quarter.”
MicroStrategy’s overall revenue for the fourth quarter was $132.6 billion, reportedly beating Wall Street expectations. Its Q4 loss per share came in at $21.93.
At the time of writing, MicroStrategy’s stock price had fallen over 4% in after-hours trading according to Yahoo Finance data.
