MicroStrategy, the software firm better known in recent years for its bet on bitcoin, reported a net loss of $249.7 million for the fourth quarter of 2022 compared to a loss of $90 million in the same period of the prior year.
Analysts had been expecting net income of $10.7 million, which would have been the first quarterly profit since the fourth quarter of 2020. The company's shares declined 2.9% in post-market trading, according to TradingView.
Revenue exceeded analyst expectations, coming in at $132.6 million compared to $134.5 million in the same quarter last year.
MicroStrategy noted that the net loss had been affected by digital asset impairment charges of $197.6 million, with the company writing down the value of its bitcoin as its price declined over the period. The company said it sold 704 bitcoin for cash proceeds of $11.8 million in the fourth quarter that resulted in gains of $0.9 million.
Overall, MicroStrategy increased its total bitcoin holdings to 132,500 worth $1.8 billion at the end of 2022, compared to 130,000 at the end of the third quarter. The company said cumulative impartment losses for its holdings totaled $2.2 billion.
"Our corporate strategy and conviction in acquiring, holding, and growing our bitcoin position for the long term remains unchanged," CFO Andrew Kang said in a statement. Co-founder Michael Saylor tweeted earlier in the day that "Bitcoin is a mission."
While bitcoin has risen 43.5% so far this year to $23,709, it declined about 65% in the period covered in MicroStrategy's latest earnings release.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.