Business intelligence firm MicroStrategy said it will study opportunities to generate returns from the 95,643 Bitcoin (BTC) “free of charge” held by its subsidiary MacroStrategy.
In MicroStrategy’s Q1 2022 report released on Tuesday, the company said it “may conservatively explore future untaxed Bitcoin return opportunities from MacroStrategy” in return for a $205 collateralized BTC loan. million issued by Silvergate Bank in March. As of March 31, MicroStrategy held a total of 129,218 BTC, which the company said had a book value of approximately $2.9 billion, reflecting cumulative impairment losses of more than $1 billion and an aggregate cost of $4 billion. .
“MicroStrategy’s original cost basis and market value of bitcoin were $3.967 million and $5.893 million, respectively, reflecting an average cost per bitcoin of approximately $30,700 and a market price per bitcoin of $45,602.79, respectively”, the company said.
Today, @MicroStrategy is the world’s largest publicly traded corporate owner of #bitcoin with over 129,200 bitcoins.
Please join the management team at 5pm EDT as we discuss $MSTR Q1 2022 financial results and answer questions about our business & outlook.https://t.co/UOSdCKQOSx
— Michael Saylorâš¡ï¸ (@saylor) May 3, 2022
According to the report, 95,643 BTC of MacroStrategy’s crypto holdings are “unencumbered” as of March 31, with 19,466 BTC held by the subsidiary pledged as collateral – approximately $820 million at the time of deal – for a loan of $205 million from Silvergate. The remaining 14,109 BTC was held by MicroStrategy.
MicroStrategy posted revenue of $119.3 million in the first quarter of 2022, down 3% from the prior year. Additionally, the company’s expenses not subject to Generally Accepted Accounting Principles (GAAP) for the first quarter were $275 million, with $170 million of BTC impairment charges. The US Securities and Exchange Commission reportedly sent a letter to MicroStrategy in January requesting that the firm stop using non-GAAP methods to calculate its financials.
Since making a $250 million investment in Bitcoin in August 2020, MicroStrategy now owns billions in cryptocurrencies after separate purchases using company cash on hand and proceeds from sales of senior convertible bonds in private offerings to buyers. institutional. The price of BTC is $37,787 at press time, making the firm’s 129,218 coins worth approximately $4.9 billion.
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