MicroStrategy will continue to buy bitcoin again this year

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

In an interview with The Wall Street Journal, Le said it is not yet clear whether the company will buy more bitcoin than last year, but will continue to do so. According to reports submitted to the Securities and Exchange Commission, on December 29, 2021, the company owned approximately 124,391 bitcoins.

Meanwhile, the SEC would also like MicroStrategy to change the disclosure of its bitcoin file in future announcements. The Securities and Exchange Commission has sent letters to the firm asking it to better reflect the volatility of bitcoin in its announcements, rather than applying an accounting practice that corrects for the impairment of bitcoin.

Le wrote a letter last September stating that the impairment could distract from the company’s overall results. MicroStrategy has since agreed to review its disclosures, understanding the SEC's position.

Le said the company has no plans to sell its stake in bitcoin, MicroStrategy is “constantly” looking for other ways to use bitcoin to create value for shareholders. The company is considering buying bitcoin-backed bonds over the next few years. However, Le says it depends on whether the market becomes more liquid.

MicroStrategy will publish its fourth quarter results on February 1, which will be watched by the market with a keen eye.