MicroStrategy Announced its Q4 2021 Financial Results

MicroStrategy Announced its Q4 2021 Financial Results

On February 2nd, MicroStrategy, an American company that provides business intelligence, mobile software, and cloud-based services, revealed its financial results. 

The company has a total of 125,051 Bitcoin holdings to this day. The currency was acquired for about $3.78 billion at a price of $30,200 per Bitcoin.

Nonetheless, the company commented in the report:

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We significantly expanded our bitcoin holdings in the quarter, adding over 10,300 bitcoins to our holdings after successfully raising capital in the quarter through our at-the-market equity offering. Today, MicroStrategy is the world’s largest publicly traded corporate owner of bitcoin with over 125,000 bitcoins. We will continue to evaluate opportunities to raise additional capital to execute on our bitcoin acquisition strategy.

Compared to the same time last year, the company’s operating expenses had a 125$ increase at $248 million. The results further showed that the company experienced a net loss of $146.6 million obtained in impairment charges on its Bitcoin holdings.

Unfortunately, MicroStrategy lost $901 million, which is not far from a billion dollars, over the last months as a result of impairment charges. An impairment loss is a drop in the asset's purchase cost caused by a decrease in its fair value. To be precise, when an asset's fair value falls below its acquisition price, the difference is written off.

The highest impairment loss was 80% of the total Bitcoin value purchased. In total there was a net loss of $8.43 per share or $90 million.

Not long ago MicroStrategy managed to gather a total of almost $6 billion in cryptocurrency. Later they comfirmed their plans of buying more Bitcoin in 2022.

Una N. - Crypto Analyst

by Una N. - Crypto Analyst, BitDegree