Bitcoin’s Investor Base and Institutional Adoption Is Continuing To Mature, Says MicroStrategy – Here’s Why

Analytics software company Microstrategy says its Bitcoin (BTC) impairment charge in Q3 of 2022 only amounts to $700,000, far less than the $65 million charged during the same period last year.

At the firm’s latest earnings call, Microstrategy senior executive vice president and chief financial officer Andrew Kang says the company incurred nominal impairment charges due to Bitcoin’s stable price during the quarter.

“The Bitcoin volatility as measured by the one-month realized volatility fell below that of the major equity indices such as the S&P 500 and NASDAQ this past quarter.”

BTC was hovering between $19,000 and $23,000 last quarter. The leading cryptocurrency by market cap is trading for $20,208 at time of writing.

“During the quarter, Bitcoin prices remained above our carrying value, low watermark of approximately $17,600 – and as a result, we saw a minimal digital asset impairment charge in Q3.”

Kang says that the firm sees Bitcoin’s price movement as an indicator that the top coin is drawing more mature investors.

“We view this recent market shift as a possible signal that Bitcoin’s investor base and institutional adoption is continuing to mature, making it more suitable and accepted by traditional market participants.”

The earnings call on Tuesday is the company’s first after Phong Le took over as chief executive. MicroStrategy co-founder Michael Saylor, who stepped down as CEO in August and now serves as the firm’s executive chairman, says his new position will allow him to focus more on being an advocate for Bitcoin.

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