Bitcoin’s Investor Base and Institutional Adoption Continues to Evolve, MicroStrategy Says – Here’s Why

Analyst software maker Microstrategy says its bitcoin (BTC) impairment loss in the third quarter of 2022 is just $700,000, a significant decrease from the $65 million it accrued in the same quarter last year.

During the company’s latest conference call, Andrew Kang, senior executive vice president and chief financial officer of Microstrategy, stated that the company incurred minimal impairment costs due to the stability of Bitcoin prices throughout the year or quarter.

“Bitcoin volatility, as measured by one-month realized volatility, has fallen below that of major stock indices such as the S&P 500 and NASDAQ over the past quarter. »

BTC fluctuated between $19,000 and $23,000 last quarter. At the time of writing, the largest cryptocurrency by market capitalization is trading at $20,208.

“During the quarter, Bitcoin prices remained above our book value, a low of around $17,600, and as a result, we saw minimal digital asset impairment costs in the third quarter. »

Kang says the company sees bitcoin’s price movement as an indication that the blue chip is attracting more mature investors.

“We see this recent market shift as a possible signal that bitcoin’s investor base and institutional adoption continues to evolve, making it more suitable and acceptable to traditional market participants. »

Tuesday’s earnings call is the first at the company since Phong Le took over as CEO. MicroStrategy co-founder Michael Saylor, who stepped down as CEO in August and is now the company’s executive chairman, says his new position will allow him to focus more on protecting bitcoin.

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