MicroStrategy to Study New Scenarios for Boosting Bitcoin Hodling Margins

MicroStrategy will explore additional opportunities to profit from unencumbered bitcoins on its balance sheet. The presentation for the Q1 2022 earnings results.

For the period, the company’s revenue amounted to $119.3 million, with expenses of $298 million, including $170.1 million due to a negative revaluation of 129,218 BTC ($194.1 million in Q1 2021).

For January–March, the company posted an operating loss of $170 million ($183.2 million). Net loss was $130.8 million ($110 million).

As of March 31, 2022, the carrying value of the bitcoins stood at the equivalent of $2.896 billion. The figure reflects cumulative impairment losses of $1.07 billion since acquisition, and an average carrying value per coin of approximately $22,409.

The cost basis and market value of the digital gold were $3.967 billion and $5.893 billion, respectively. The company bought bitcoins at an average price of $30,700, while the market valued them at $45,602 on March 31, 2022.

Earlier in March 2022, MicroStrategy raised $205 million in debt financing to purchase bitcoin from Silvergate secured by its crypto assets.

Earlier, CEO Michael Saylor acknowledged the successful policy of buying digital gold and promised to continue following this strategy.

Most recently, the company invested in its primary cryptocurrency in April — the investment total was $190 million.

Subscribe to ForkLog’s channel on YouTube!