2 years ago
MicroStrategy (MSTR) reported a non-cash integer plus impairment complaint of $146.6 cardinal successful the 4th quarter, up from $65.2 cardinal successful the anterior quarter, according to its latest net statement.
The impairment reflects the diminution successful the terms of bitcoin versus the terms astatine which the bitcoin was acquired. Under modular accounting rules, the worth of integer assets specified arsenic cryptocurrencies indispensable beryllium recorded astatine their outgo and past lone adjusted if their worth is impaired, oregon goes down. But if the terms rises, that does not get reflected until an plus is sold.
The company's 124,391 bitcoins held astatine the extremity of Dec. 31, 2021 were acquired for $3.752 billion, reflecting an mean outgo per bitcoin of astir $30,159, the institution reported.
MicroStrategy reported connected Tuesday greeting that it bought astir 660 further bitcoins for astir $25 cardinal between Dec. 30, 2021, and Jan. 31, 2022. This gives the institution a full of 125,051 bitcoins, valued astatine astir $4.8 cardinal astatine the existent bitcoin terms of $38,700.
The SEC precocious objected to MicroStrategy’s accounting accommodation for its bitcoin holdings. The institution aboriginal told the committee that it would “revise its disclosures of non-GAAP measures successful aboriginal filings to region the accommodation for impairment losses and gains connected merchantability related to bitcoin, arsenic requested by the Commission.”
Shares of MicroStrategy were down astir 0.4% successful after-hours trading. Shares person fallen astir 34% implicit the past month.
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Michael Bellusci is CoinDesk's crypto payments reporter.
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