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Digital Assets | 12 Months Ended
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Dec. 31, 2022
Intangible Assets Net Excluding Goodwill [Abstract] |
Digital Assets | (4) Digital Assets The following table summarizes the Company’s digital asset holdings (in thousands, except number of bitcoins), as of:
|  | December 31, |
|  | 2022 |  |  | 2021 |
Approximate number of bitcoins held |  |  | 132,500 |  |  |  | 124,391 |
Digital assets carrying value |  | $ | 1,840,028 |  |  | $ | 2,850,210 |
Cumulative digital asset impairment losses |  | $ | 2,153,162 |  |  | $ | 901,319 |
The carrying value represents the lowest fair value (based on Level 1 inputs in the fair value hierarchy) of the bitcoins at any time since their acquisition. Therefore, these fair value measurements were made during the period from their acquisition through December 31, 2022 or 2021, respectively, and not as of December 31, 2022 or 2021, respectively. The following table summarizes the Company’s digital asset purchases, digital asset sales, digital asset impairment losses, and gains on sale of digital assets (in thousands, except number of bitcoins) for the periods indicated:
|  | Years Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Approximate number of bitcoins purchased |  |  | 8,813 |  |  |  | 53,922 |  |  |  | 70,469 |
Approximate number of bitcoins sold |  |  | 704 |  |  |  | 0 |  |  |  | 0 |
Digital asset purchases |  | $ | 287,921 |  |  | $ | 2,626,529 |  |  | $ | 1,125,000 |
Digital asset sales |  | $ | 11,817 |  |  | $ | 0 |  |  | $ | 0 |
Digital asset impairment losses |  | $ | 1,287,213 |  |  | $ | 830,621 |  |  | $ | 70,698 |
Gains on sale of digital assets |  | $ | 927 |  |  | $ | 0 |  |  | $ | 0 |
From time to time, the Company may be extended short-term credits from Coinbase to purchase bitcoin in advance of using cash funds in the Company’s trading account. The trade credits are due and payable in cash within days after they are extended. In 2021, certain of the assets, including bitcoin, of MacroStrategy LLC (“MacroStrategy”), a wholly-owned subsidiary of the Company, were subject to a first priority security interest and lien in order to secure the repayment of short-term trade credits taken in its name. While trade credits are outstanding, the Company may incur interest fees and be required to maintain minimum balances in its trading and collateral accounts with Coinbase. As of December 31, 2022 and 2021, the Company had no outstanding trade credits payable. As of December 31, 2022, approximately 14,890 of the bitcoins held by the Company serve as part of the collateral for the Company’s 6.125% Senior Secured Notes due 2028 (the “2028 Secured Notes”), as further described in Note 8, Long-term Debt, to the Consolidated Financial Statements. As of December 31, 2022, approximately 34,619 of the bitcoins held by the Company serve as part of the collateral for a $205.0 million term loan (the “2025 Secured Term Loan”) issued to MacroStrategy by Silvergate Bank (“Silvergate”), as further described in Note 8, Long-term Debt, to the Consolidated Financial Statements.

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- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -URI https://asc.fasb.org/subtopic&trid=2144471 + Details
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