Business intelligence entity MicroStrategy reportedly shared its intention of exploring the opportunities for yield generation on 95,643 “unencumbered” Bitcoin (BTC) kept in its subsidiary MacroStrategy.

Specifically, as detailed in MicroStrategy’s report for Q1 this year, the company reportedly revealed that it “may conservatively explore future yield generation opportunities on unencumbered MacroStrategy bitcoins”, after Silvergate Bank completing the issuance of a $205 million BTC-collateralized loan back in March. 

As of the end of March 2022, MicroStrategy reportedly has in its possession the overall number of 129,218 BTC, which the company calculated to hold a value of approximately $2.9 billion – a reflection of cumulative impairment losses of over $1 billion as well as an aggregate cost of $4 billion.

“The original cost basis and market value of MicroStrategy’s bitcoin were $3.967 billion and $5.893 billion, respectively, which reflects an average cost per bitcoin of approximately $30,700 and a market price per bitcoin of $45,602.79, respectively”. 

Per the report, the status of 95,643 BTC of MacroStrategy’s crypto assets is “unencumbered” as of March 31. 

Of the 95,643, 19,466 of which are in the possession of the subsidiary are dedicated to function as collateral – around $820 million at the time of the deal – for a $205 million loan from Silvergate. 

The remaining 14,109 BTC were reportedly in direct possession of MicroStrategy.

MicroStrategy reportedly managed to reel in $119.3 million in revenue for the first quarter of this year – a 3% slump on a yearly basis.

Moreover, the firm’s non-Generally Accepted Accounting Principles (GAAP) expenses for the first quarter were $275 million, with $170 million from BTC impairment charges.