MicroStrategy BTC paper loss hits $1.3B but no plans to stop trading bitcoin

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  • MicroStrategy registers $34 million in its first bitcoin sale.
  • The company recorded a paper loss of over 1 billion in 2022.
  • MicroStrategy made its first bitcoin purchase in August 2020.

Despite paper losses of nearly $1.3 billion in 2022, MicroStrategy chief financial officer Andrew Kang said the company will continue trading Bitcoin, during a Q4 2022 Financial Results Presentation for WebearKang said:

“We may consider entering into additional transactions that may take advantage of bitcoin price volatility, or other market dislocations that are consistent with our long-term bitcoin strategy.”

The company’s stance on digital currencies comes at a time when the crypto market is seeing a substantial recovery from last year’s decline, though it remains unclear whether digital currencies will ever recapture their previous highs.

microstrategy bitcoin investing

microstrategy made it First bitcoin purchase in August 2020 Received 21,454 BTC, describing it as a “capital allocation strategy”. The company has been hoarding bitcoins since then and as of 24 December 2022 held 132,500 BTC worth $4.027 billion. microstrategy bitcoin statistics Buy Bitcoin Worldwide website.

In a February 2023 presentation, Kang confirmed that MicroStrategy held 132,500 bitcoins, worth approximately $1.84 billion, as of December 31, 2022.

Last quarter, MicroStrategy lost $34 million after its first bitcoin sale. The company decided to sell some of its bitcoins to offset some tax losses.

MicroStrategy co-founder Michael Saylor said that bitcoin is one of the most important benchmarks he uses to measure his stock performance. He said that the company’s stock has gained 117% as of August 2020. bitcoin price Which has increased by 98% in the same period.

In an interview with a popular news outlet, Saylor said:

“The only real safe haven for an institutional investor is bitcoin. Bitcoin is the only universally accepted digital commodity, and so if you are an investor, bitcoin is your safe haven in this regard.

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