When MicroStrategy started buying Bitcoin BTC -2.21% in bulk in the summer of 2020, CEO Michael Saylor said it was because inflation would make cash worthless. Technically, under U.S. accounting rules, before any Bitcoin is sold, the drop is another paper loss for the enterprise software maker, which MicroStrategy may need to account for when it reports its second-quarter results. Raise significant impairment charges.
For shareholders, the company’s stock fell 66% in the quarter ended Thursday, outpacing Bitcoin’s 59% decline. At the end of the first quarter, MicroStrategy’s Bitcoin was worth about $5.9 billion, which means that as Bitcoin closed around $18,900 on June 30, the same Bitcoin was worth about $2.45 billion, up from three months ago. 58% reduction.
MicroStrategy holds about 129,699 Bitcoins at an average price of about $30,665 per Bitcoin, according to a Form 8-K filed Wednesday, for a total purchase price of about $3.98 billion.
