Nearly $2.3 Billion Worth of Bitcoin Moved Out of Wallet Involved in 2016 Bitfinex Hack: Whale Alert

Nearly $2.3 billion worth of Bitcoin (BTC) stolen in the infamous 2016 Bitfinex exchange heist is moving to a new wallet.

Crypto tracker Whale Alert reports that the hacker’s account shifted more than 64,641 Bitcoin across 21 separate transactions on Monday, all of which were sent to the same new wallet.

The BTC trove was valued at nearly $2.3 billion at the time of the transactions.

Blockstream Explorer reports that the receiving address now holds more than 94,643.298 BTC, worth more than $3.66 billion at time of writing. It is currently the fifth-richest Bitcoin address in the world, according to BitInfoCharts.

In August 2016, Bitfinex was hacked for more than 119,756 BTC, worth roughly $72 million at the time and worth more than $4.6 billion today.

In February 2019, Bitfinex published a report stating that the US government had managed to retrieve only around 27 BTC stolen in the hack.

In August 2020, the exchange announced it would award 5% of any recovered funds to anyone who could put the company in contact with the hacker. Bitfinex also said it would allow the hackers themselves to keep 25% of any property that’s recovered if they cooperated with the exchange.

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Microstrategy lost $146M to Bitcoin impairment charges in Q4 2021

MicroStrategy, the fortune 500 company with a 125,051 Bitcoin (BTC)-strong treasury, announced its Q4 2021 financial results on Feb. 2.

The institutional software solution provider reported a net loss of $146.6 million incurred in impairment charges on its Bitcoin holdings. The high impairment losses added to the company’s operating expenses which saw a 125% increase at $248 million as compared to the same quarter last year.

An impairment loss is a recognized reduction in the acquisition cost of an asset that is triggered by a decline in its fair value. When the fair value of an asset declines below its purchase amount, the difference is written off.

The firm has lost nearly a billion dollars ($901 million) in impairment charges on its BTC holdings over the last six quarters. 

MicroStrategy decided to add BTC impairment charges after the U.S. Securities and Exchange Commission (SEC) rejected its existing ‘non-GAAP’ Bitcoin accounting methods. SEC asked the business intelligence firm to add share-based compensation expense and impairment losses and gains on sale.

The impairment losses of $146.6 million were the third-highest for the company where it accounted for 25% of its BTC purchase in the same quarter. The highest impairment loss came in the second quarter of 2021 where it lost about 80% of the total BTC value purchased in that quarter. MicroStrategy recorded a net loss of $90 million or $8.43 per share on a diluted basis in Q4.

Related: MicroStrategy buys the dip by purchasing 660 Bitcoin for $25M

MicroStrategy currently holds a total of 125,051 BTC acquired for about $3.78 billion at an average price of $30,200 per Bitcoin. 

Microstrategy started buying Bitcoin in August 2020 to use it as a treasury hedge instead of the U.S. Dollar. The firm has been instrumental in bringing Bitcoin to institutional firms and public companies including the likes of Tesla and SpaceX.