Microstrategy registered $170 million impairment charge on BTC in its Q1 reports and also revealed appointing, Andrew Kang, as the new Senior Executive Vice President and Chief Financial Officer so let’s read more today in our latest Bitcoin news today.
The American business intelligence company Microstrategy released the Q1 financial results in which it revealed a non-cahs digital asset impairment charge of $170.1 million and the company also revealed appointing Andrew Kang as the new Senior Executive Vice President and the Chief Financial Officer who took over Phong Le and will continue as the company’s President. As of March 31st, 2022, Microstrategy held 129,218 BTC acquired for $3.972 billion with the carrying value of $2.896 billion reflecting the cumulative impairment losses of $1.071 billion.
The reports mentioned that the original cost basis and the market value of Michael Saylor’s company BTC holdings were $3.967 billion and $5.893 billion by the end of March and this represented the average cost per BTC of $30,700 and the market price per BTC of $45,602. According to the current CFO, Microstrategy registered $170 million impairment charge in BTC but according to the CFO, the company doesn’t;t have any plans to engage in sales and rather continues to acquire and hold BTC in the long-term:
“We had another active and successful quarter. We purchased $215 million of Bitcoin at an average purchase price of $44,645 per Bitcoin, net of fees and expenses. We have not sold any Bitcoin to date. We view our Bitcoin holdings as long-term holdings and we do not currently plan to engage in sales of Bitcoin. “
Microstrategy raised $205 million from silver gate Bank as an interest-only loan for a term of three years and was collateralized by BTC while the loan will mature on March 23, 2025. The company said that it could explore future yield generation opportunities on unencumbered BTC. Earlier this year, US SEC disapproved of Microstrategy’s accounting adjustment and to reflect the concerns, the software company stated that it will remove the adjustment for impairment losses and gains on the sales related to crypto.
As recently reported, Michael Saylor called Microstrategy’s BTC play a huge success and said he plans on buying even more as he is already two years into the multibillion-dollar experiment with BTC. According to the new investor letter, his experiment is paying off. MicroStrategy CEO Michael Saylor called Microstrategy’s BTC play a huge success in driving the shareholder value.
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