Bitcoin whale MicroStrategy has announced the financial results for Q4 2021. According to the results, the company added more than 10,300 Bitcoin to balance in the last quarter of 2021.
MicroStrategy Incorporated, a NASDAQ-listed business intelligence firm led by Michael Saylor, on Tuesday, February 1, announced financial results for the three-month period ended December 31, 2021.
Please join the @MicroStrategy management team at 5pm ET as we discuss our Q4 2021 results and answer questions about our business results and outlook for #BusinessIntelligence and #Bitcoin. $MSTRhttps://t.co/nOjAapQP1v
— Michael Saylor⚡️ (@saylor) February 1, 2022
Although the company reported a positive revenue growth for its software business since 2014, fourth quarter resulted in a net loss of $90 million or $8.43 per share on a diluted basis, compared to net income of $2.66 million or $0.27 per share last year.
The press release reads:
“Net loss for the fourth quarter of 2021 was $90.0 million, or $8.43 per share on a diluted basis, as compared to net income of $2.7 million, or $0.27 per share on a diluted basis, for the fourth quarter of 2020. Digital asset impairment charges of $146.6 million and $26.5 million for the fourth quarter of 2021 and 2020, respectively, were reflected in these amounts.”
However, MicroStrategy carried on with its Bitcoin accumulation strategy by adding 10,300 coins to its balance sheet. Financial highlights of Q4 reveals that as of December 31, 2021, the firm is holding 124,391 BTCs that brings the carrying value of MicroStrategy’s digital assets to $2.850 billion.
This represent a loss on Bitcoin investments as the firm were holding 124,391 BTCs at an average cost per BTC of approximately $30,159 on December 31, 2021. The carrying amount of these 124,391 BTCs should be $3.571 billion. Financial highlights for digital assets read:
“As of December 31, 2021, the carrying value of MicroStrategy’s digital assets (comprised of approximately 124,391 bitcoins) was $2.850 billion, which reflects cumulative impairment losses of $901.3 million since acquisition and an average carrying amount per bitcoin of approximately $22,913. As of December 31, 2021, the original cost basis and market value of MicroStrategy’s bitcoin were $3.752 billion and $5.707 billion, respectively, which reflects an average cost per bitcoin of approximately $30,159 and a market price per bitcoin of $45,879.97, respectively.”
In Q4 2021, MicroStrategy purchased Bitcoin using $591.0 million in net proceeds from its sale of 858,588 shares of class A common stock offered under the Open Market Sale Agreement and excess cash.
Yet Another Purchase
MicroStrategy has purchased an additional 660 bitcoins for ~$25.0 million in cash at an average price of ~$37,865 per #bitcoin. As of 1/31/22 we #hodl ~125,051 bitcoins acquired for ~$3.78 billion at an average price of ~$30,200 per bitcoin. $MSTRhttps://t.co/bF6VImC0Qy
— Michael Saylor⚡️ (@saylor) February 1, 2022
MicroStrategy is currently the world’s largest publicly traded corporate owner of Bitcoin but has no plans of slowing down as with release of Q4 financial results on Tuesday, February 1, the firm has also announced yet another purchase of 660 bitcoins for $25 million at an average price of $37,865. With this purchase, the company is now holding 125,051 bitcoins at an average price of $30,200.
