MicroStrategy Inc, the largest corporate holder of Bitcoin, is reportedly sitting on $1.8 billion in unrealized losses from its purchases.
The Tysons Corner, Virginia-based software company and its subsidiaries hold roughly 130,000 Bitcoin, worth around $2.2 billion at the current price. The Bitcoins were bought at an aggregate price of almost $4 billion, with each Bitcoin costing around $30,369. This now places the company $1.8 billion in the red.
Can MicroStrategy continue hodling?
Executive chairman Michael Saylor had previously said the company would never sell its Bitcoin. The refusal to sell means that the company sits on substantial paper losses. Additionally, the company recorded a $917.8 million impairment charge after it reported losses related to the decline in the price of Bitcoin earlier this year.
MicroStrategy classifies Bitcoin as an intangible asset, which means that the company must permanently mark down any…
