MicroStrategy Reports $147M Impairment Charges On Bitcoin In Q4 — But It's Not Backing Down

MicroStrategy Inc. MSTR recorded a digital asset impairment charge of $146.6 million in the recent fourth quarter, but the business intelligence firm continues to add more Bitcoin BTC/USD to its holdings.

What Happened: MicroStrategy CEO Michael Saylor, a self-proclaimed Bitcoin bull, announced on Twitter that the company has purchased an additional 660 bitcoins for about $25 million in cash, at an average price of about $37,865 per bitcoin.

MicroStrategy has purchased an additional 660 bitcoins for ~$25.0 million in cash at an average price of ~$37,865 per #bitcoin. As of 1/31/22 we #hodl ~125,051 bitcoins acquired for ~$3.78 billion at an average price of ~$30,200 per bitcoin. $MSTRhttps://t.co/bF6VImC0Qy

— Michael Saylor (@saylor) February 1, 2022

The company — the largest corporate holder of Bitcoin — said in a regulatory filing that it made the purchase between Dec. 30, 2021 and Jan. 31, 2022.

As at the end of January, MicroStrategy held about 125,051 bitcoins that were acquired for an aggregate purchase price of $3.78 billion.

At the time of writing, the price of Bitcoin is $38,681.06. This implies that Microstrategy’s Bitcoin holdings are now worth $4.8 billion, down from $5.9 billion in early December.

MicroStrategy reported a fourth-quarter net loss of $89.9 million, or $8.43 per share, on Tuesday.

See also: How To Buy Bitcoin (BTC)

Why It Matters: The rise in acceptance of Bitcoin as a major store of value and payment option has been influenced by major corporations adding the cryptocurrency to their balance sheet.

The price of Bitcoin — the world’s largest cryptocurrency by market capitalization — is stabilizing after falling in January amid worries about monetary policy tightening by the U.S. Federal Reserve.

The apex cryptocurrency is down 43.8% from its all-time high of $68,789.63 touched in November.

Price Action: MicroStrategy shares closed almost 1.4% higher in Tuesday’s regular trading session at $373.00, but fell 0.5% in the after-hours session to $371.00.

Bitcoin is up almost 0.6% during the past 24 hours, trading at $38,709.23 at press time.

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