Crypto Crash Leaves MicroStrategy With Heavy Losses 


MicroStrategy, an Embedded Analytics platform based in America, is struggling hard due to its connection with Bitcoin. In the past few weeks, Bitcoin’s value has experienced significant declines, and as a result firms such as MicroStrategy are beginning to suffer the wrath of this destruction. 

MicroStrategy Suffers Huge Losses 

Michael Saylor, CEO of MicroStrategy, issued a recent form 10-Q, in which he states that the first quarter wasn’t great since due to the crypto crash the company lost over $170 million and more than 60 percent of its operating expenses. What’s interesting is that this was before the top coin lost its $30,000 support.

The CEO revealed that for the three months ended March 31, 2022, they faced a net loss because of the impairment losses suffered by the crypto asset, and in the future, they might not even gain back or increase profitability on a quarterly or annual basis. Adding that their digital asset impairment losses contributed largely to the company’s net loss and operating expenses. 

Even after this statement by the Microstrategy CEO, some still argue that firms such as MicroStrategy aren’t suffering at a high level. Managing director of BTIG, Mark Palmer, says that even though it is strongly connected to BTC, it relies on its actual software offerings (which are still quite strong) rather than the top coin.

Palmer explains that media sources focus on the impairment charges, which can be a lot, and pose these numbers in a way that seems to have a negative impact on the stock of the company. However, it is not the truth as MicroStrategy’s inherent value is in business intelligence software and bitcoin’s value on its balance sheet which is easy to calculate by just finding out the current price point at the given time. 

The executive director at Oppenheimer & Company, Owen Lau also commented on the matter and said that analysts and other people would throw it out of the equation if you are holding digital assets on the balance sheet in a non-material way and you’re not a bitcoin miner or MicroStrategy.

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