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MicroStrategy Remains Bullish On BTC Despite $1.3B Paper Loss

MicroStrategy, an analytics software firm, announced a $1.3 billion paper loss on its Bitcoin holdings in 2022. Despite this, the company intended to keep trading the flagship cryptocurrency.

MicroStrategy To Continue Trading BTC

During a Q4 2022 earnings call, the Chief Financial Officer, Andrew Kang, indicated that the company’s losses would not affect its commitment to BTC. In 2022, the company’s BTC holdings dropped by BTC’s price dropped below $20,000.

The value of MicroStrategy’s BTC vault dropped by over $1.3 billion. However, Kang stated that the company would continue to invest in BTC despite the poor market situation.

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Meanwhile, Michael Saylor, MicroStrategy co-founder and current executive chairman, in a recent call, noted that the firm utilizes several benchmarks to examine its stock performance.

According to him, BTC was one of the company’s significant assets. He argued that BTC is the only digital commodity recognized worldwide. 

On December 31st, 2022, MicroStrategy’s total Bitcoin holdings were 132,500 BTC (worth approximately $1.84 billion).

MicroStrategy owned 14,890 BTC from this total, while MicroStrategy, the company’s subsidiary, held the rest.

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MicroStrategy Sold 704 BTC In 2022

The company recently chose to sell a portion of its Bitcoin holdings for the first time. The CFO of the firm disclosed the reason behind this move.

He said MicroStrategy saw it as an opportunity to save approximately $34 million in taxes. Although MicroStrategy sold 704 BTC, the firm could still increase its overall collection of the cryptocurrency by acquiring an additional 2,500 BTC in Q4 2022.

This serves as evidence that MicroStrategy is heavily invested in cryptocurrencies. Moreover, the firm has remained bullish on BTC over the years.

During Q4 2022, MicroStrategy demonstrated exceptional performance by generating revenue of $132.6 billion. The software giant exceeded the expectations of those in the Wall Street community.

Despite a loss of $21.93 per share, the company’s strong performance made its stock price drop by 4% during after-hours trading. The results indicate that MicroStrategy remains financially strong and is poised to maintain its competitive edge.

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Despite having a poor performance in 2022, the flagship cryptocurrency has started 2023 on a good note. According to data from CoinMarketCap, BTC is currently trading around the $23,000 mark.


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Bradley Nelson

Bradley Nelson is a US based cryptocurrency news writer for Tokenhell, he helps readers stay up to date with the latest trends and news from the blockchain and crypto world. Bradley has been a crypto enthusiast since 2018.

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