Bitcoin whale MicroStrategy has announced financial results for the fourth quarter of 2021. According to the results, the company added more than 10,300 Bitcoin to the balance sheet in the last quarter of 2021.
MicroStrategy Incorporated, a NASDAQ – listed business intelligence company headed by Michael Saylor , announced financial results for the three-month period ending December 31, 2021 on Tuesday, February 1.
Although the company reported positive revenue growth for its software business since 2014, the 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 says:
Net loss for the fourth quarter of 2021 was $90.0 million, or $8.43 per share on a diluted basis, 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 quantities .”
However, MicroStrategy continued its Bitcoin accumulation strategy by adding 10,300 coins to its balance sheet . Fourth quarter financial highlights reveal that as of December 31, 2021, the firm holds 124,391 BTC bringing the book value of MicroStrategy’s digital assets to $2.85 billion.
This represents a loss on Bitcoin investments , as the company held 124,391 BTC at an average cost per BTC of approximately $30,159 as of December 31, 2021. The carrying amount of these 124,391 BTC should be $3,571 million. The financial highlights of digital assets are as follows
« As of December 31, 2021, the book value of MicroStrategy’s digital assets (composed of approximately 124,391 bitcoins) was $2.85 billion, reflecting cumulative impairment losses of $901.3 million since the acquisition and a average book value per bitcoin of approximately $22,913. As of December 31, 2021, MicroStrategy’s original cost basis and market value of bitcoin were $3,752 million and $5,707 million, respectively, reflecting an average cost per bitcoin of approximately $30,159 and a price market price per bitcoin of $45,879.97, respectively .”
In the fourth quarter of 2021, MicroStrategy purchased Bitcoin using $591.0 million in net proceeds from its sale of 858,588 Class A common shares offered under the Open Market Sale Agreement and excess cash.
MicroStrategy is currently the largest publicly traded corporate owner of Bitcoin , but has no plans to slow down, as with the release of Q4 financial results on Tuesday, February 1, the company has also announced another purchase of 660 bitcoins per $25 million at an average price of $37,865 . With this purchase, the company now has 125,051 bitcoins at an average price of $30,200.