MicroStrategy, the largest publicly-traded business intelligence company, announced in its financial results for the first quarter of 2022, that the company bore a non-cash digital asset impairment charge of $170.1 million, up from last quarter.
Standard accounting rules say that the value of digital assets, including cryptocurrencies, should be recorded at the cost price and only adjusted if their value goes down.
MicroStrategy also made an announcement about Andrew Kang Lee taking on the position of the chief financial officer, while Phong Le, who earlier held this position will continue as its president.
Considering Bitcoin’s current price, the average price per coin comes to $37,662, with a total valuation of $4.9 billion.
This bitcoin acquisition comes in the wake of Microstrategy securing a $205 million loan from Silvergate Bank backed by its existing BTC holdings to buy more bitcoins.
CFO Phong Le integrated that for a margin call to occur on the Silvergate loan, Bitcoin prices would have to fall by half from their existing levels.
Michael Saylor, CEO of Microstrategy, said, “We also furthered our position as the leading public company investor in bitcoin through the issuance of our first bitcoin-backed term loan.