MicroStrategy will continue to purchase bitcoin this year, says CFO

MicroStrategy Chief Financial Officer Phong Le says the firm will continue to purchase bitcoin despite recent downturns.

In an interview with The Wall Street Journal, Le said it's unclear if the firm will buy more bitcoin than it did last year year, but it will continue to buy. As of December 29, 2021, the firm held approximately 124,391 bitcoins, according to its filings with the Securities and Exchange Commission. 

Meanwhile, the SEC also wants MicroStrategy to amend how it discloses its bitcoin holdings in future filings. The securities watchdog sent letters to the firm asking it to better reflect bitcoin's volatility in its filings, rather than use accounting practices that adjust for bitcoin impairment losses.

Le penned a letter last September claiming the impairment losses could distract from the company's overall results, though MicroStrategy has since agreed to revise its disclosures and Le told the Wall Street Journal he understood the SEC's point of view.


Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Bitcoin reached lows not seen since July this week, though it has climbed to over $36,000 at the time of publication. 


Le said the firm has no plans to sell its holdings, and that MicroStrategy is "constantly" looking at other ways to use bitcoin to add value for shareholders. The firm is considering buying bitcoin-backed bonds in the next few years. Though, that will depend on the market becoming more liquid, according to Le. 

MicroStrategy will release fourth quarter earnings on February 1. 

About Author

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to akeely@theblock.co or follow her on Twitter for updates @AislinnKeely.