MicroStrategy Inc., the enterprise-software firm known for its significant public ownership of Bitcoin, posted yet another quarterly loss, its eighth in a row, due to a write-down of its cryptocurrency holdings, according to Bloomberg’s report.
The enterprise-software company, led by Bitcoin enthusiast Michael Saylor, recorded a net loss of $249.7 million in Q4 2022, with revenue declining 1.5% to $132.6 million.
Despite stepping down from his role as CEO in 2021, Saylor remains committed to his strategy of holding Bitcoin as a significant asset on MicroStrategy’s balance sheet. This approach saw the company’s shares drop 74% in 2021 as Bitcoin plummeted 64%.
However, MicroStrategy’s shares have rebounded, more than doubling since the start of the year 2023, as BTC saw a 45% rally. The company ended 2022 with $43.8 million in cash, its lowest in 40 quarters, and generated $3.2 million from operations, down from $94 million the previous year.
Bitcoin & MicroStrategy’s Future
The Virginia-based firm continues to shape its financial future around Bitcoin, as it recorded another loss due to a writedown of its cryptocurrency holdings. MicroStrategy’s commitment to Bitcoin is evident, as its BTC holdings, worth $2.2 billion, have increased by $850 million since the end of last year.
As of December, MicroStrategy had accumulated 132,500 BTC, which it acquired for around $42.8 million in cash. The company sold 704 tokens for tax purposes and bought 810 more, demonstrating its unwavering commitment to BTC as a key asset.
MicroStrategy’s Bitcoin Strategy: Risk & Reward
The company’s choice to hold BTC as a significant asset on its balance sheet has brought both risk and reward. In addition, the company’s shares saw a 74% decline in 2021 as Bitcoin plummeted 64%, but shares have more than doubled since the start of the year, as BTC saw a 45% rally.
While it posted another quarterly loss due to a writedown of its cryptocurrency holdings, its commitment to BTC remains unwavering. However, the company ended the year with $43.8 million in cash, its lowest in 40 quarters, but the value of its BTC holdings, worth $2.2 billion, increased by $850 million since the end of last year.
As MicroStrategy continues to shape its financial future around BTC, only time will tell if this risk-reward strategy will pay off in the long term.
Related Reading | For FTX & Alameda Ties Silvergate Under Criminal Investigation: Report