There’s one line item in earnings season that has weighed heavily on many publicly traded companies holding Bitcoin this year: unrealized losses.
On its November 10 earnings call, the publicly traded company under Trump disclosed that it held 15,649 Bitcoin, up 1,510 from the second quarter, at an average cost basis of $105,271. It reported an unrealized loss of about $476 million on its books. As prices kept falling, its holdings grew instead.
The difference between an unrealized loss and a realized loss comes down to one action: selling. Until a sale, price fluctuations are just an adjustment on the balance sheet, and a company can ride out earnings season at its own pace. Sell to make the financial statements look better, and the unrealized loss becomes a real one; any subsequent rebound won’t benefit the company.
When looking at these companies’ holdings, the average cost basis determines how much they’re hurting, while whether they’ve pledged their coins as collateral determines how urgently they need to act.
$BTC
On its November 10 earnings call, the publicly traded company under Trump disclosed that it held 15,649 Bitcoin, up 1,510 from the second quarter, at an average cost basis of $105,271. It reported an unrealized loss of about $476 million on its books. As prices kept falling, its holdings grew instead.
The difference between an unrealized loss and a realized loss comes down to one action: selling. Until a sale, price fluctuations are just an adjustment on the balance sheet, and a company can ride out earnings season at its own pace. Sell to make the financial statements look better, and the unrealized loss becomes a real one; any subsequent rebound won’t benefit the company.
When looking at these companies’ holdings, the average cost basis determines how much they’re hurting, while whether they’ve pledged their coins as collateral determines how urgently they need to act.
$BTC
