MicroStrategy reported a net loss of $90 million or $8.43 a share in the fourth quarter, missing consensus estimates for a profit of 89 cents a share.
The loss appears largely due to MicroStrategy’s (ticker: MSTR) inclusion of impairment losses on its Bitcoin, amounting to $147 million. That more than wiped out the company’s $110.5 million gross profit from its software business.
MicroStrategy is now largely a bet on Bitcoin. The company used proceeds from convertible debt and equity offerings throughout 2021 to continue adding to its Bitcoin collection. The company bought more than 10,300 Bitcoins in the quarter and another 660 in January, taking its total to 125,051 Bitcoins.
“Today, MicroStrategy is the world’s largest publicly traded corporate owner of Bitcoin,” CEO Michael Saylor said in an earnings release. “We will continue to evaluate opportunities to raise additional capital to execute on our Bitcoin acquisition strategy.”
The company said in its earnings report that its average cost was $30,159 per coin at a total cost basis of $3.7 billion. At a recent price of $38,800 per coin, its tokens were worth $4.85 billion on Tuesday.