MicroStrategy Bitcoin Impairment Losses
MicroStrategy's significant impairment charges indicate ongoing depreciation in Bitcoin's value.
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
"Strategy's expanding network of preferred securities, convertible debt and dividend obligations has made maintaining sufficient liquidity increasingly important. The growing reserve gives Strategy a larger liquidity cushion as it manages billions of dollars of preferred securities and convertible debt while Bitcoin remains below the company's average acquisition price."
"Schiff took aim at Saylor’s extremely audacious 2025 forecast that Bitcoin would hit $1 million per coin if Strategy managed to accumulate 5% of the total circulating supply. Strategy currently owns 3.9% of all Bitcoin. However, the economist argues that the law of diminishing returns is already severely impacting the firm's buying power and market influence."
"If Bitcoin falls below MicroStrategy’s average entry price and stays there, traders say the psychological impact could be severe."
"The cryptocurrency was trading at around $92,500 recently, down from highs last week of around $99,000."
"MicroStrategy on Wednesday turned in a Q3 loss that... was unexpected as the company's bitcoin impairment losses climbed during the quarter."
"MicroStrategy’s Bitcoin was worth about $5.9 billion at the end of the first quarter of 2022, but it’s fallen about 73% since then."
"it's lost roughly half its value since it started acquiring Bitcoin."
"MicroStrategy posted a $1.06 billion loss in the second quarter of 2022, largely due to bitcoin’s collapse."
"According to the company’s latest earnings report, MicroStrategy took a non-cash digital asset impairment charge of USD 917.8 million in the second quarter."
"In two years, Bitcoin suffered 59%, spelling major troubles for companies like MicroStrategy."