MicroStrategy's Bitcoin Bet Backfires: Reports Massive Fourth Quarter Loss – Here's What You Need to Know.
Michael Saylor at the Bitcoin 2022 conference in Miami. Source: A video screenshot, Youtube/Bitcoin Magazine
Bitcoin (BTC) bull Michael Saylor’s big bet may be about to backfire for his company MicroStrategy, after the firm on Thursday reported a massive loss for the fourth quarter of last year.
The net loss for MicroStrategy for the fourth quarter ended up at $249.7m, with the number dragged down significantly by a $197.6m loss from the firm’s bitcoin investment strategy, the report revealed.
As of the end of the fourth quarter, MicroStrategy held approximately 132,500 BTC, worth some $1.840bn. The company has recorded a cumulative impairment loss on its BTC holding of $2.153bn since acquisition.
Yesterday’s reported loss marks the eighth consecutive quarterly loss MicroStrategy has reported. Despite this, the company has remained steadfast in his faith in Bitcoin.
“Our corporate strategy and conviction in acquiring, holding, and growing our bitcoin position for the long term remains unchanged,” MicroStrategy’s chief financial officer Andrew Kang was quoted as saying in a press release sent out by the company.
Meanwhile, in an earnings call the same day, MicroStrategy founder and chairman Michael Saylor pointed to the increase in the company’s share price since the bitcoin strategy was announced in August of 2020.