The world’s largest publicly traded company by bitcoin holdings, MicroStrategy, has issued its Q3 2022 Report, The company owned by Parma Bull Michael Sayer announced that it still hasn’t sold a single bitcoin.
As Bitcoinist reported, Seller’s company again took a fall in September, when it bought 301 BTC worth $6 million, with an average acquisition price of ~$19,860 per bitcoin.
As of September 30, 2022, MicroStrategy’s holdings now total 130,000 Bitcoins. This amount represents 0.62% of all coins minted so far. The total cost of all purchases, excluding fees and expenses, is $3.983 billion, which equates to an average purchase price of $30,639 per coin.
However, the current book value is only $1.993 billion, reflecting an accumulated loss of $1.990 billion and an average book value of approximately $15,331 per bitcoin.
In addition, MicroStrategy reported a minimum loss of $727,000 on its bitcoin (BTC) holdings in the third quarter, which is in line with the relative small drop in spot price. Compared to the previous quarters, when the price of BTC took a significant drop, the losses were quite small. In Q2, MSTR reported a loss of $917.8 million.
Microstrategy’s Chief Financial Officer (CFO) Andrew Kang emphasized in a press release that the company will continue to buy BTC and hold it for a long time. In addition, the CFO stressed that a recent directive from the Financial Accounting Standards Board has allowed the company to opt for fair value accounting.
This will allow the company to report losses and gains as quickly as other traditional financial assets. Kang explained that this would encourage other public companies to tap into bitcoin as an asset class.
Bitcoin prices were stable during the third quarter, and encouraged by the FASB’s recent announcement of its support for fair value accounting for bitcoin, we imposed a minimum bitcoin loss fee.
If eventually adopted and implemented, we believe fair value accounting will improve the current, unfavorable amortized accounting treatment applied to bitcoin holdings and promote additional institutional adoption of bitcoin as an asset class.
To caution investors, Microstrategy also emphasized in its press release that its core business remains untouched by short-term bitcoin price volatility. In addition, the company has “enough liquidity to cover debt service payments,” with no short-term debt maturities.
Numbers in favor of MicroStrategy’s bitcoin standard
Michael Sayler, who stepped down as CEO on August 8 but remains as the company’s executive chairman, has not tired of emphasizing lately that his bitcoin bets could outpace all other investments by a wide margin. makes it better.
On October 28, he shared the chart below on the performance of all major assets and indices as Microstrategy adapted the bitcoin benchmarks on August 10, 2020.
— Michael Saylor⚡️ (@saylor) 28 October 2022
At the time of writing, the price of bitcoin is moving sideways, awaiting Federal Reserve Chairman Jerome Powell’s much-anticipated speech at today’s FOMC meeting. as newsbtc informed ofThe market is up 75 basis points and is mainly focusing on comments for future rate hikes.