Microstrategy earnings report
According to its latest earnings report, Microstrategy, which has more than 129,000 BTC on its balance sheet, recorded a non-cash digital asset impairment charge of $170.1 million in the first quarter, compared to $146.6 million. dollars in the fourth quarter. The depreciation of digital assets is the decline in the price of bitcoin (BTC) from the purchase price.
The company’s 129,218 bitcoins were acquired for $3.97 billion at the end of March 31, 2022, representing an average cost per bitcoin of nearly $30,700, according to the company. At the current price of bitcoin, which is $37,662, the value of these holdings is nearly $4.9 billion.
Yield generation opportunities
MicroStrategy officials outlined some potential methods for the company to generate a return from its massive bitcoin holdings during a virtual investor day in December, and the topic came up again in the quarterly report, such as the company said in its presentation document that it may conservatively explore future yield-generating opportunities on unencumbered MacroStrategy bitcoins.
In its earnings report, MicroStrategy mentioned a Bitcoin-backed financing deal with Silvergate through its subsidiary MacroStrategy, hinting that it may pursue similar deals in the future.