• MicroStrategy reported a massive fourth quarter loss of $249.7m, with the number dragged down significantly by a $197.6m loss from its Bitcoin investment strategy.
• The company has recorded a cumulative impairment loss on its BTC holding of $2.153bn since acquisition.
• Despite this, the company has remained steadfast in his faith in Bitcoin and founder Michael Saylor pointed to the increase in the company’s share price since the bitcoin strategy was announced.
MicroStrategy Reports Massive Fourth Quarter Loss
MicroStrategy on Thursday reported a net loss of $249.7 million for the fourth quarter ended, with this amount dragged down significantly by a $197.6 million loss from its Bitcoin investment strategy. As of the end of the fourth quarter, MicroStrategy held approximately 132,500 BTC, worth some $1.84 billion and has recorded a cumulative impairment loss on its BTC holding of $2.153 billion since acquisition – marking this as the eighth consecutive quarterly loss for MicroStrategy .
Michael Saylor Remains Faithful To Bitcoin
Despite this, MicroStrategy founder and chairman Michael Saylor remains faithful to Bitcoin, pointing to the increase in their stock price since announcing their bitcoin strategy in August 2020 during an earnings call: “At that — on the day before, our stock was about $121 to 122$ per share – today it closed at 292$ per share – so we measure our success based upon creation of shareholder value” he said. Shares of MicroStrategy traded up 9% to 292$ after-hours trading slipped back to 284$. Since announcing their first bitcoin purchase in August 2020, bitcoin has approximately doubled in price – and they have continued buying throughout both bull and bear markets – most recently spending 42$ million to buy 2395 BTC in late December last year..
Bitcoin (BTC) Bull Bet
Bitcoin bull Michael Saylor’s big bet may be about to backfire for his company MicroStratgey after reporting these losses – however despite this they remain committed to their long term corporate strategy and conviction when it comes to investing and growing their position with bitcoin holdings..
Decrease In Share Price Since Beginning Of 2022
Since beginning of 2021 MSTR shares have decreased 46%, hitting a low point around 15476$ November 2020 – but currently trading around 23000$, double what it was when Mictrostragy made its first purchase last year..
Despite recording yet another quarterly loss due primarily to their Bitcoin investment strategy – Michael Saylor remains committed to creating long term shareholder value through his Bitcoin bet – while also noting an overall increase in stock prices since they began investing last year..