MicroStrategy may explore ‘future yield generation opportunities’ on 95,643 BTC holdings

Business intelligence firm MicroStrategy stated it’ll consider possibilities for yield generation on 95,643 “unencumbered” Bitcoin (BTC) held by its subsidiary MacroStrategy.

In MicroStrategy’s report for that first quarter of 2022 released on Tuesday, the firm stated it “may conservatively explore future yield generation possibilities on unencumbered MacroStrategy bitcoins” like a consideration carrying out a $205 million BTC-collateralized loan from Silvergate Bank in March. By March 31, MicroStrategy held as many as 129,218 BTC, that the firm reported were built with a transporting worth of roughly $2.9 billion, reflecting cumulative impairment losses in excess of $1 billion as well as an aggregate price of $4 billion.

“The original cost basis and market price of MicroStrategy’s bitcoin were $3.967 billion and $5.893 billion, correspondingly, which reflects a typical cost per bitcoin of roughly $30,700 along with a market cost per bitcoin of $45,602.79, correspondingly,” stated the firm.

Based on the report, 95,643 BTC of MacroStrategy’s crypto holdings are “unencumbered” by March 31, with 19,466 BTC held through the subsidiary promised as collateral — roughly $820 million during the time of the offer — for any $205 million loan from Silvergate. The rest of the 14,109 BTC were held directly by MicroStrategy.

MicroStrategy reported $119.3 million in revenue for Q1 2022, a 3% decrease year-over-year. Additionally, the firm’s non-Generally Recognized Accounting Concepts (GAAP) expenses for that first quarter were $275 million, with $170 million from BTC impairment charges. The U . s . States Registration apparently sent instructions to MicroStrategy in The month of january requesting the firm stop using non-GAAP ways of calculating its finances.

Related: MicroStrategy subsidiary adds another 4,197 BTC to balance sheet

Since creating a $250-million purchase of Bitcoin in August 2020, MicroStrategy now holds billions in crypto following separate buys while using company’s money on hands and proceeds of sales of convertible senior notes privately choices to institutional buyers. The BTC cost is $37,787 during the time of publication, making the firm’s 129,218 coins worth roughly $4.9 billion.

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