According to the latest earnings report published by MicroStrategy, the company lost $ 170.1 million in Bitcoin (BTC) assets in the first quarter of the year. In the last quarter of last year, the company's loss was $146.6 million.

Changes Made to MicroStrategy Management

The company also announced that Andrew Kang will take over from Phong Le as chief financial officer effective May 9, after which he will continue as president of Le MicroStrategy. Kang was previously the CFO of tech company Greensky Inc.

The company's loss of Bitcoin assets is recorded as compared to BTC's decline in price at the time it was purchased. Under standard accounting rules, the value of digital assets such as cryptocurrencies is recorded at their cost and is only adjusted if their value declines. In the event that the value of the assets increases, it does not need to be reported unless the asset is sold.

For 2021, MicroStrategy recorded total digital asset losses of $831 million. For 2020, this amount was measured as 71 million dollars.

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The Company Has 129,218 Bitcoins

As of March 31, 2022, the company has 129,218 BTC purchased for a total of $ 3.97 billion. According to the data, the average purchase price of these BTCs was recorded as 30,700.

Between February 15th and April 4th, MicroStrategy purchased another 4,167 BTC for a payment of $190.5 million, for an average of $45,714.

US Federal Reserve

What Will Be the Effect of Fed Rate Decision on Bitcoin?

The meeting of the US Federal Reserve, which the markets have been waiting for months, started today and will end tomorrow with the announcement of President Powell's interest rate decision. It is stated that the possibility of the Fed's interest rate hike by 50 basis points and the hawkish statements from the bank are putting downward pressure on cryptocurrencies.

Analysts stated that Bitcoin and cryptocurrencies have lost value very sharply in the last period, but a first in BTC after 8 years. Experts stated that there are many bear seasons in the crypto money market, and the value loss of Bitcoin reached up to 90 percent during these seasons. However, BTC, which has never lost value for more than 4 weeks in 8 years, has set a new record with its weekly closing in the past days.