MicroStrategy’s CFO confirms that the company would continue to acquire bitcoin this year
Phong Le, Chief Financial Officer of MicroStrategy, said the company would continue to acquire bitcoin despite recent price declines.
In an interview with The Wall Street Journal, Le said that although it is unknown if the business would purchase additional bitcoin this year, it will continue to do so. According to Securities and Exchange Commission filings, the business possessed roughly 124,391 bitcoins as of December 29, 2021.
Meanwhile, the SEC has requested that MicroStrategy change its future filings about how it discloses its bitcoin holdings. The securities regulator wrote to the business requesting that it more accurately represent bitcoin’s volatility in its filings rather than relying on accounting techniques that account for bitcoin impairment losses.
Le sent a letter to the SEC in September asserting that impairment losses might detract from the company’s overall performance, however, MicroStrategy has since agreed to change its disclosures, and Le told the Wall Street Journal he understood the SEC’s position.
This week, Bitcoin fell to levels not seen since July, however, it has subsequently recovered to over $36,000 at the time of publishing.
Le said that the business has no intentions to sell its bitcoin assets and is “constantly” exploring new methods to utilise bitcoin to create value for shareholders. In the next years, the business is contemplating purchasing bitcoin-backed bonds. However, according to Le, that will rely on the market being more liquid. On February 1, MicroStrategy will report fourth-quarter profits.
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