The company’s losses bear been minute in Q3 thanks to Bitcoin’s stable price.
Key Takeaways
- MicroStrategy reported $727,000 in impairment losses on its Bitcoin holdings within the third quarter of 2022.
- The company’s Bitcoin impairment losses bear been considerably better in other intervals and quarters.
- MicroStrategy holds 130,000 BTC price $2.5 billion and is the largest public company to make investments in Bitcoin.
MicroStrategy reported a $727,000 impairment charge this quarter following losses on its Bitcoin holdings.
MicroStrategy Faces Minimal Losses
MicroStrategy noticed only minute Bitcoin losses this quarter.
In accordance to a Tuesday press liberate, the company incurred only a “minimal bitcoin impairment charge” thanks to stable Bitcoin prices within the third quarter of 2022.
These impairment losses amounted to resplendent $727,000 within the three-month period ending on September 30, 2022. By comparison, the company noticed $65 million of impairment losses within the identical three-month period in 2021.
MicroStrategy also reported $1 billion of impairment losses within the 9-month period ending September 30, 2022, and $684 million of impairment losses within the identical 9-month period ending September 30, 2021.
Impairment is a selected period of time outmoded to sing the deprecation of an asset’s resplendent market price in accounting.
MicroStrategy renowned that it has been encouraged by the Financial Accounting Requirements Board’s most modern Bitcoin policies on accounting matters. In October, the FASB launched that it could maybe truly likely require companies to measure crypto property at resplendent price—a alternate that will blueprint particular accounting guidelines for institutional crypto traders.
MicroStrategy CFO Andrew Kang wrote that the company believes this could maybe likely also “toughen upon basically the most modern, spoiled intangible accounting therapy” and “promote extra institutional adoption of bitcoin as an asset class”
The company added that it is a long way the largest publicly traded company proprietor of Bitcoin, because it holds 130,000 BTC.
MicroStrategy firstly purchased that quantity for $3.98 billion in varied purchases starting in August 2020. Its holdings are with out a doubt price $2.53 billion at most modern prices.
Of its total holdings, 301 BTC (presently price $6.1 million) bear been purchased final quarter.
Disclosure: On the time of writing, the author of this piece owned BTC, ETH, and other digital property.
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