MicroStrategy pledges to buy more Bitcoin despite impairment losses in Q2

MicroStrategy has pledged to buy more Bitcoin despite reporting impairment losses of $424.8 million in Q2.

MicroStrategy pledges to buy more Bitcoin despite  impairment losses in Q2

Depending on how you add the figures up, MicroStrategy appears to have made nearly a billion dollars more from Bitcoin than it spent. Along with CEO Michael Saylor’s fervent belief in Bitcoin, that may be why it’s resolved to add more Bitcoin to its reserves going forward.

“We continue to be pleased by the results of the implementation of our digital asset strategy. Our latest capital raise allowed us to expand our digital holdings, which now exceed 105,000 bitcoins. Going forward, we intend to continue to deploy additional capital into our digital asset strategy," the report said.

As of June 30, 2021, MicroStrategy held an approximate 105,085 BTC with a carrying value of $2.051 billion, at an impairment loss of $689.6 million since acquisition. The average carrying amount per Bitcoin was an estimated $19,518, according to the report.

The digital asset figures were calculated using Generally Accepted Accounting Principles (GAAP) — a collection of commonly accepted accounting rules used for financial reporting. The firm also provided non-GAAP calculations, which in this report exclude the impact of share-based compensation expense and impairment losses and gains on sale from intangible assets.

The non-GAAP figures paint a different picture for company’s digital asset holdings, with the BTC cost basis at $2.741 billion but its market value is $3.653 billion, which reflects an average cost per BTC at $26,080 and the market price of $34,763 as of June 30.

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