MicroStrategy’s Stance on Bitcoin:
• MicroStrategy registered $34 million in its first-ever bitcoin sale, resulting in a paper loss of over 1 billion in 2022.
• Despite taking this paper loss, the company has no plans to stop trading bitcoin and may seek additional transactions.
• The company currently holds 132,500 BTC worth $1.84 billion as of December 31, 2022.
MicroStrategy’s First-Ever Bitcoin Sale
In August 2020, MicroStrategy made its first bitcoin purchase, acquiring 21,454 BTC as part of a “capital allocation strategy”. By December 24 2022 the company had 132,500 BTC worth an estimated $4.027 billion according to data from Buy Bitcoin Worldwide website. During the Q4 2022 financial results presentation on February 2023 it was confirmed that the company held 132,500 bitcoin with a total value of around $1.84 billion as of Dec 31st 2022.
Paper Loss Following Bitcoin Sale
The decision was made to sell some of its bitcoins during the quarter which resulted in a paper loss of around $34 million for MicroStrategy – one billion dollars since their initial purchase in August 2020 . The move has been viewed by many as a way to recoup some tax losses for the company.
Michael Saylor’s View On Bitcoin
Co-founder Michael Saylor spoke about how they measure their stock performance against that of Bitcoin saying: „The only real safe haven for an institutional investor is Bitcoin“. He further said that since August 2020 when they made their first investment into cryptocurrency – Microstrategy stocks have risen by 117% compared to Bitcoins 98% rise within the same period.
Continuing Trading Despite Paper Loss
Despite taking this significant paper loss Andrew Kang – chief financial officer at MicroStrategy said that there were no plans to stop trading BTC and instead suggested looking for additional opportunities due to volatility or market dislocations that are consistent with their long-term strategy for investing in cryptocurrencies like Bitcoin.
It is clear from this article that despite taking a significant paper loss – Microstrategy has no intention of stopping its involvement with cryptocurrencies such as Bitcoin and is actively seeking out new ways to capitalize on potential opportunities offered by volatile markets or other external factors related to digital assets investments