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MicroStrategy recorded a $170 million bitcoin impairment loss in the first quarter of 2022

  • The biggest Bitcoin-Business Owner Recorded $170.1 Million in Bitcoin Impairment Loss in the First Three Months of 2022
  • The latest Bitcoin addition was funded by a $205 million Bitcoin-backed loan.

The world’s largest bitcoin hodler company, MicroStrategy, released its financial results for the first quarter of 2022 on Tuesday, reporting total revenue of 119.3 million, down 2.9% year-on-year.

A tough Q1

MicroStrategy also said it saw a cumulative impairment loss of $1.071 billion for its Bitcoin strategy. In the three months ended March 31, in which Bitcoin fell 1.2%, the software intelligence company held 129,218 BTC, which at the time had a total market value of $5.893 billion and a book value of $2.896 billion. had dollars.

The company’s recent purchases have included his portfolio Added a whopping 4,167 BTC tokens. The corporate digital asset hodler bought the tokens between Feb. 18 and April 4 after raising a three-year, $205 million loan that was increased by more than fourfold Bitcoin ($820 million) was collateralised.

We also expanded our position as a leading publicly traded bitcoin investor by issuing our first bitcoin-backed term loan. We have demonstrated that our bitcoin can be productively used as collateral in capital raising transactions, allowing us to further execute our business strategy.” said CEO Michael Saylor.

The Virginia-based company also noted that non-GAAP (operating) expenses for the first quarter of 2022 totaled $263.6 million, of which $170.1 million was attributable to impairment losses on bitcoin holdings . That loss in digital assets totaled $194.1 million in the first quarter of last year.

“Operating loss for the first quarter of 2022 was $170.0 million compared to $183.2 million for the first quarter of 2021. Net loss for the first quarter of 2022 was $130.8 million or $11.58 $110.0 million, or $11.40 per share, on a diluted basis for the first quarter of 2021. Included in these amounts were digital asset impairments of $170, $1M and $194.1M for Q1 2022 and 2021, respectively.” read the release.

Overall, operating costs decreased by 7% compared to the figures recorded back then in the previous year.

Andrew Kang joins MicroStrategy

MicroStrategy also announced the appointment of Andrew Kang as its new CFO and Senior Executive VP. Kang, who previously held the same two roles at Greensky, brings a wealth of experience in the financial and capital markets.

Source: Crypto News Deutsch

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