MicroStrategy logged a $170 million Bitcoin impairment loss in Q1 2022

  • The most important company Bitcoin holder recorded a Bitcoin impairment lack of $170.1 million within the first three months of 2022
  • Its newest Bitcoin addition was funded by a $205 million Bitcoin-backed mortgage.

The world’s largest enterprise Bitcoin hodler MicroStrategy on Tuesday launched its first-quarter 2022 financials, revealing a complete income of 119.3 million, down 2.9% on the yr. 

A tricky Q1

MicroStrategy additionally mentioned it noticed a cumulative impairment lack of $1.071 billion on its Bitcoin Technique. Within the three-month interval ending March 31, throughout which Bitcoin dropped by 1.2%, the software program intelligence agency held 129,218 BTC, which on the time had a complete market worth of $5.893 billion and a carrying worth of $2.896 billion.

The corporate’s most up-to-date purchases noticed as many as 4,167 BTC tokens added to its portfolio. The company digital asset hodler bought the tokens between February 18 and April 4 after taking a $205 million three-year mortgage backed by greater than 4 instances value of Bitcoin ($820 million).

We additionally furthered our place because the main public firm investor in bitcoin by way of the issuance of our first bitcoin-backed time period mortgage. We have now demonstrated that our bitcoin may be productively used as collateral in capital elevating transactions, which permits us to additional execute towards our enterprise technique,” mentioned CEO Michael Saylor.

The Virginia-based agency additionally famous that non-GAAP (operational) bills totalled $263.6 million in Q1 2022, of which $170.1 million was from impairment losses on Bitcoin holdings. This loss on the digital property stood at $194.1 million in Q1 final yr.

“Loss from operations for the primary quarter of 2022 was $170.0 million, in comparison with $183.2 million for the primary quarter of 2021. Web loss for the primary quarter of 2022 was $130.8 million, or $11.58 per share on a diluted foundation, as in comparison with $110.0 million, or $11.40 per share on a diluted foundation, for the primary quarter of 2021. Digital asset impairment expenses of $170.1 million and $194.1 million for the primary quarter of 2022 and 2021, respectively, have been mirrored in these quantities,” the discharge learn.

Total the working bills declined by 7% from the figures recorded final yr at such a time.

Andrew Kang joins MicroStrategy 

MicroStrategy additionally revealed the appointment of Andrew Kang as the brand new CFO and senior govt VP. Kang, who beforehand held the identical two roles at Greensky, boasts a wealth of expertise in finance and capital markets. 

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