MicroStrategy will continue to buy Bitcoin despite the price drop

MicroStrategy CFO Phong Le said the company will continue to buy bitcoin despite recent downturns.

In an interview with The Wall Street Journal, Phong said it’s unclear if the company will buy more bitcoin than it did over the past year, but will continue to buy. As of December 29, 2021, the company held approximately 124,391 BTC, according to filings with the US Securities and Exchange Commission (SEC).

Source: MicroStrategy

In the meantime, the SEC also wants MicroStrategy to revamp the way it discloses its Bitcoin holdings in future filings.

The watchdog sent a letter to the company asking that it better reflect Bitcoin’s volatility in its records, rather than using accounting methods to offset losses due to Bitcoin’s decline in value.

Phong wrote a letter last September alleging that impairments could affect the company’s overall results, although MicroStrategy has since agreed to amend its disclosures.

Bitcoin hit a low not seen since July this week, although it is hovering around $36,000 at press time.

Source: TradingView

Phong said the company has no plans to sell its shares and that MicroStrategy is “constantly” looking for other ways to use bitcoin to add value to shareholders, such as buying fiat-backed bitcoin bonds in the next few years. However, this is dependent on the market becoming more liquid.

MicroStrategy will report its fourth quarter results on February 1st.

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