Strategy To Take $5.9 Billion Loss On Bitcoin Holdings In Q1

Michael Saylor’s Strategy (NASDAQ: MSTR) is beginning to feel the pinch of falling bitcoin prices. The company in a Form 8-K filed this morning indicated that it will be taking a large loss in the first quarter as a result of the adoption of certain accounting standards as of January 1.

The loss relates to its bitcoin holdings, with the new accounting standards requiring the company to incur any increase or decrease in the fair value of its bitcoin holdings. With the price of bitcoin falling in recent weeks, this means the company is facing a $5.91 billion loss related to its bitcoin holdings in the first quarter.

The loss is expected to be partially offset by an income tax benefit of $1.69 billion.

Strategy in the first quarter purchased a total of 80,715 bitcoin at an average price of $94,922, leading to an aggregate purchase price of $7.66 billion. Collectively, the company has spent $35.63 billion acquiring 528,185 bitcoin at an average price of $67,458. The carrying value of that bitcoin sits at $43.55 billion.

Strategy last traded at $271.36 on the Nasdaq.


Information for this briefing was found via Edgar and the sources 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.

Video Articles

Barrick Mining’s “Company Defining [Gold] Discovery”

America Uses More Copper Than It Makes | Simon Quick – Canadian Copper

Gold Bulls Run Faster Than New Mines?! | Thomas Mumford – Scottie Resources

Recommended

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Altamira Gold Encounters Porphyritic Intrusive Rocks In Initial Scout Drilling At Regional Targets

Related News

MicroStrategy’s Michael Saylor Defends Bitcoins Environmental Impact: “Most Efficient, Cleanest Industrial Use Of Electricity”

MicroStrategy (Nasdaq: MSTR) Executive Chairman Michael Saylor defends bitcoin anew regarding its impact on the...

Thursday, September 15, 2022, 10:15:17 AM

MicroStrategy Buys More Bitcoin As It Sustains More Losses From Crypto Investment

MicroStrategy (Nasdaq: MSTR) announced on Tuesday its Q3 2022 financial results toplined by a quarterly...

Wednesday, November 2, 2022, 09:59:05 AM

Michael Saylor Claims There’s “60% Risk-Free Returns” At The Bitcoin Lake

Michael Saylor, executive chairman of MicroStrategy (NASDAQ: MSTR) and one of the most outspoken advocates...

Monday, December 30, 2024, 11:18:00 AM

Strategy To Sell $2.0 Billion In 0% Notes To Buy More Bitcoin

Strategy (NASDAQ: MSTR), formerly known as MicroStrategy, has launched an offering for $2.0 billion in...

Wednesday, February 19, 2025, 08:35:46 AM

Michael Saylor Sees MicroStrategy Grant Him Free Use Of Company Aircraft

MicroStrategy Inc (NASDAQ: MSTR) last night filed a form 8-K, revealing that compensation for its...

Thursday, November 4, 2021, 08:30:04 AM