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MicroStrategy BTC paper loss hits $1.3 billion, but no plans to stop trading bitcoin

  • MicroStrategy registered $34 million in its first-ever bitcoin sale.
  • The company recorded a paper loss of more than 1 billion in 2022.
  • MicroStrategy made its first bitcoin purchase in August 2020.

Despite a paper loss of about $1.3 billion in 2022, MicroStrategy’s chief financial officer Andrew Kang said the company will continue to trade bitcoin. Speaking to the Webnier of Q4 2022 financial results, Kang said:

“We may consider pursuing additional trades that can take advantage of volatility in Bitcoin prices or other market disruptions that are consistent with our long-term Bitcoin strategy.”

The company’s stance on digital currencies comes as the crypto market is experiencing a significant recovery from last year’s plunge, though it’s not clear whether digital currencies will ever recapture their previous highs.

Micro strategy bitcoin investment

Microstrategy made its first bitcoin purchase in August 2020, acquiring 21,454 BTC in what it described as a “capital allocation strategy”. The company has been accumulating bitcoins ever since and by December 24, 2022, it held a whopping 132,500 BTC worth $4.027 billion according to Microstrategy bitcoin stats on the Buy Bitcoin Worldwide website.

In the February 2023 presentation, Kang confirmed that Microstrategy owns 132,500 bitcoin worth approximately $1.84 billion as of December 31, 2022.

In the last quarter, MicroStrategy made a loss of $34 million after its first-ever Bitcoin sale. The company made the decision to sell some of its bitcoins to recoup some tax losses.

Microstrategy co-founder Michael Saylor said Bitcoin is one of the main benchmarks it uses to measure its stock performance. He said the company’s shares are up 117% since August 2020 compared to the price of bitcoin, which is up 98% over the same period.

In an interview with a popular news channel, Saylor said:

“The only real safe haven for an institutional investor is Bitcoin. Bitcoin is the only universally recognized digital commodity, so if you are an investor, Bitcoin is your safe haven in this regard.”

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