The Company accounts for its digital assets, which are comprised solely of bitcoin, as indefinite-lived intangible assets in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other. The Company’s digital assets are initially recorded at cost. Subsequently, they are measured at cost, net of any impairment losses incurred since acquisition. Impairment losses are recognized as “Digital asset impairment losses” in the Company’s Consolidated Statement of Operations in the period in which the impairment occurs.

The following table summarizes the Company’s digital asset holdings (in thousands, except number of bitcoins), as of:

	March 31,		December 31,
	2022		2021
Approximate number of bitcoins held		129,218		124,391
Digital assets carrying value	$	2,895,619	$	2,850,210
Cumulative digital asset impairment losses	$	1,071,410	$	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 March 31, 2022 or December 31, 2021, respectively, and not as of March 31, 2022 or December 31, 2021, respectively.

The following table summarizes the Company’s digital asset purchases and digital asset impairment losses (in thousands, except number of bitcoins) for the periods indicated:

	Three Months Ended
	March 31,
	2022		2021
Approximate number of bitcoins purchased		4,827		20,857
Digital asset purchases	$	215,500	$	1,086,375
Digital asset impairment losses	$	170,091	$	194,095

The Company did not sell any of its bitcoins during the three months ended March 31, 2022 and 2021, respectively.

As of March 31, 2022, approximately 14,109 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 4, Long-term Debt, to the Consolidated Financial Statements and in Note 8, Long-term Debt, to the Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. As of March 31, 2022, approximately 19,466 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 LLC (“MacroStrategy”), a wholly-owned subsidiary of the Company, by Silvergate Bank (“Silvergate”), as further described in Note 4, Long-term Debt, to the Consolidated Financial Statements.