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Microstrategy wants to explore more ways to earn yield on its Bitcoin holdings

03 May 2022 : 22:11
2 min read
  • MicroStrategy released its first-quarter financial results for 2022
  • The company wants to carefully explore future yield generation opportunities for its Bitcoin
  • Microstrategy currently holds a total of $4.9 billion worth of BTC

On Tuesday, MicroStrategy released its first-quarter financial results for 2022, mentioning future yield generation opportunities.

Microstrategy’s earnings report

According to its most recent earnings report, Microstrategy, which has more than 129,000 BTC on its balance sheet, recorded a non-cash digital asset impairment charge of $170.1 million in the first quarter, up from $146.6 million in the fourth quarter. The digital asset impairment is the drop in bitcoin (BTC) price relative to the purchase price.

The firm’s 129,218 bitcoins were acquired for $3.97 billion at the end of March 31, 2022, representing an average cost per bitcoin of nearly $30,700, according to the corporation. At the current price of bitcoin, which is at $37,662, the value of such holdings is almost $4.9 billion.

Yield generation opportunities

MicroStrategy officials described some potential methods for the company to generate a yield from its massive Bitcoin holdings during a virtual investor day in December, and the topic was brought up again in the quarterly report, as the firm stated in its presentation document that it might conservatively explore future yield generation opportunities on unencumbered MacroStrategy bitcoins.

In its earnings report, MicroStrategy mentioned a bitcoin-backed financing arrangement with Silvergate via its MacroStrategy subsidiary, hinting that it may pursue similar transactions in the future.


About Author

Stan Colenbrander

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Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and crypto start-ups.

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