MicroStrategy's Significant Bitcoin Impairment Losses May Mislead: Berenberg
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DeFi and Credit Risk
Despite the crypto and larger stock market panic, MicroStrategy (MSTR) Chief Financial Officer Andrew Kang told The Wall Street Journal on Wednesday that the company's long-term strategy of buying and holding bitcoin (BTC) will not alter.
- According to the report, Kang stated that the company has no plans to sell at this time and has not been pressured by shareholders.
- Kang's comments follow MicroStrategy CEO Michael Saylor's repeated statements that the company will not sell its bitcoin holdings.
In a global bear market, there is no place to hide, but there is one place to stand. #Bitcoin
— Michael Saylor⚡️ (@saylor) May 19, 2022
- MicroStrategy has recently been questioned about its term loan with Silvergate and whether it would risk a margin call if bitcoin went below a certain threshold.
- MicroStrategy's bitcoins had an original cost base of $3.97 billion and a market value of $5.89 billion as of March 31, corresponding to an average cost per bitcoin of around $30,700 and a market price per bitcoin of $45,602.79, respectively. According to MicroStrategy's most recent earnings report, the company possesses little over 129,000 bitcoins.
- MicroStrategy's stock has dropped roughly 63 percent this year, while bitcoin's price has dropped about 36 percent.
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