MicroStrategy Registers a $170 Million Impairment Charge on Bitcoin in Q1

American enterprise intelligence firm MicroStrategy launched its Q1 monetary outcomes through which it revealed a non-cash digital asset impairment cost of $170.1 million.

The corporate additionally revealed appointing Andrew Kang as its new Senior Government Vice President and Chief Monetary Officer, taking on Phong Le on or about Could ninth, who will proceed because the agency’s President.

• As of thirty first March 2022, MicroStrategy held roughly 129,218 bitcoins initially acquired for $3.972 billion. The carrying worth of $2.896 billion displays cumulative impairment losses of $1.071 billion.
• The report additional talked about that the unique price foundation and market worth of the Michael Saylor-led agency’s Bitcoin holdings have been $3.967 billion and $5.893 billion, respectively, as of March finish. This primarily represented a median price per Bitcoin of roughly $30,700 and a market value per BTC of $45,602.79, respectively.
• In accordance with the present CFO, MicroStrategy doesn’t have any plans to have interaction in gross sales and as a substitute will proceed to amass and maintain Bitcoin long-term. In the course of the earnings name, Lee additionally said,

“We had one other lively and profitable quarter. We bought $215 million of Bitcoin at a median buy value of $44,645 per Bitcoin, web of charges and bills. Now we have not bought any Bitcoin so far. We view our Bitcoin holdings as long-term holdings and we don’t presently plan to have interaction in gross sales of Bitcoin. “

• MicroStrategy additionally raised $205 million from Silvergate Financial institution as an interest-only mortgage for a time period of three years, collateralized by Bitcoin. The mortgage will mature on March 23, 2025.
• The corporate additionally stated it “could conservatively discover future yield technology alternatives on unencumbered MacroStrategy bitcoins.”
• Earlier this 12 months, US Securities and Alternate Fee (SEC) disapproved of MicroStrategy’s accounting adjustment. To replicate the regulator’s concern, the software program firm, in a filing, said that it will take away the adjustment for impairment losses and beneficial properties on gross sales associated to the cryptocurrency.