It seems MicroStrategy’s (Nasdaq: MSTR) multiple bitcoin purchases are taking a toll on its bottomline. The firm shared on Tuesday its Q4 2021 financial results toplined by a quarterly revenue of US$134.5 million, up from both Q3 2021’s US$128.0 million and Q4 2020’s US$131.3 million.
Breaking down the topline revenue figure, product licenses and subscription services revenues contributed US$44.4 million (up from US$36.7 million in Q3), product services revenue contributed US$69.1 million (down from US$70.4 million in Q3), and other services added US$21.0 million.
Gross margin for the quarter ended at 82.2%, marginally down from last quarter’s 82.6% and last year’s 84.2%.
But the firm incurred again expenses higher than its generated revenues. For Q4, operating expenses came in at US$248.0 million compared to Q3 2021’s US$155.3 million and Q4 2020’s US$110.1 million. These expenses were driven by impairment losses on digital assets held which increased to US$146.6 million (more than half the quarterly opex) in the fourth quarter coming from US$65.2 million in the previous quarter.
This led the firm to notch a net loss of US$90.0 million, a significant jump from Q3 2021’s net loss of US$36.1 million and Q4 2020’s net income of US$2.7 million. The quarterly loss translates to US$8.43 per share.
At the end of the quarter, the company holds 124,391 bitcoin carrying a book value of US$2.85 billion. This comes from US$3.75 billion at the original cost basis less the cumulative impairment losses of US$901.3 million. Effectively, this translates to an average purchase price of US$30,159 per bitcoin compared to the average carrying value of US$22,913 per bitcoin.
Based on a US$45,879.97 per bitcoin market price at the end of the quarter, the firm’s digital assets carry a market value of US$5.71 billion.
The firm also ended the quarter with US$63.4 million in cash and cash equivalents, putting the balance of current assets at US$268.0 million. Current liabilities came in at US$312.0 million.
Yesterday, the firm announced its monthly update for January 2022, reporting a total purchase of 660 bitcoin for US$25.0 million.
MicroStrategy last traded at $373.00 on the Nasdaq.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.