Business intelligence firm MicroStrategy is remaining faithful to Bitcoin (BTC) despite having about $2.1 billion in unrealized losses.
In a new earnings report, the company’s president and chief executive, Phong Le, notes that MicroStrategy’s revenue grew in 2022 even though its Bitcoin investments are in the red.
According to Le, the firm had a great fourth quarter through the hardships, which is a testament to the company’s durability.
“In 2022, MicroStrategy achieved total revenue growth on a constant currency basis for the fourth quarter as well as the full year on the strength of our cloud business.
In the fourth quarter, current subscription billings grew at a double-digit growth rate for the 11th straight quarter.”
According to chief financial officer Andrew Kang, MicroStrategy is still adding BTC to its portfolio and plans to hold it for the long term. The firm’s report lists a cumulative impairment loss of $2.153 billion since the acquisition.
MicroStrategy’s average cost basis for its BTC stash, which is the largest public corporate holding, is $30,107, as per the report.
Says Kang,
“I am pleased to report we again increased our Bitcoin holdings this past quarter to a total of 132,500 Bitcoins. Our corporate strategy and conviction in acquiring, holding, and growing our Bitcoin position for the long term remains unchanged.
And while we encountered macroeconomic and foreign currency headwinds in 2022, we continue to shift to higher quality, recurring revenues as we grow and scale our cloud business. We remain intentional and precise in prioritizing costs, focusing on areas that drive revenue growth while preserving margins.”
Bitcoin is trading for $23,395 at time of writing, a fractional increase during the last day.
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