MicroStrategy Reports Impairment Charge of $727K on Bitcoin Holdings in Q3

MicroStrategy (MSTR) posted a minimal digital asset impairment charge of $727,000 on its bitcoin (BTC) holdings in the third quarter, down significantly from $917.8 million in the second quarter as the price of bitcoin remained relatively stable at the end of the second and third quarters, according to its latest earnings report.

Between Aug. 2 and Sept. 19, MicroStrategy bought 301 bitcoins for about $6 million, according to a filing with the SEC. The purchase brought its total holdings of bitcoin to almost 130,000. At bitcoin’s current price of about $20,440, the value of those holdings is approximately $2.66 billion. MicroStrategy's entire market capitalization is roughly $2.9 billion.

As of September 30, 2022, the original cost basis and market value of MicroStrategy’s bitcoin were $3.983 billion and $2.532 billion, respectively, which reflects an average cost per bitcoin of approximately $30,639 and a market price per bitcoin of $19,480.51.

Following the release of its results, MicroStrategy shares were down 0.8% to $255.09. Shares have tumbled around 51% year to date, slightly better than bitcoin’s roughly 56% drop over the same time period.

MIcroStrategy is planning to hold an earnings call with analysts at 5 p.m. ET.