MicroStrategy Reports Impairment Loss on Bitcoin Holdings in Q3

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MicroStrategy Reports Impairment Loss on Bitcoin Holdings in Q3

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MicroStrategy, a software firm known as the largest holder of Bitcoin, has announced a $727,000 impairment charge on its BTC holdings for the third quarter. The charge is a result of decreased volatility in the world's largest cryptocurrency exchange. With a total of 130,000 bitcoins, MicroStrategy is the largest publicly traded corporate owner of bitcoin. This impairment loss marks a significant decrease compared to the loss of $65 million during the same period last year. MicroStrategy also reported a $1 billion impairment loss for the nine-month period ending September 30, 2022. The company attributes these losses to the depreciation in the value of Bitcoin this year. However, they remain hopeful as they support the proposed accounting policies by the Financial Accounting Standards Board. These policies aim to improve the accounting treatment of bitcoin holdings, potentially increasing institutional adoption of Bitcoin as an asset class.