Why MicroStrategy stock plunged nearly 18% on Tuesday
The company’s most recent earnings report had a number of losses.
MicroStrategy (MSTR -17.63%) Unfortunately, we’re reporting our latest earnings at a time when our most important assets are declining.
MicroStrategy is essentially a niche technology company that has almost completely transformed into an institutional enterprise. Bitcoin (BTC -5.63%) holder. The company announced its first quarter results at a time when cryptocurrency was booming. several Drop date. This, coupled with weak fundamentals overall, sent MicroStrategy’s stock price down nearly 18% on Tuesday.
Bitcoin Blues?
MicroStrategy proudly bills itself as “the largest corporate holder of Bitcoin.” This is fantastic when the leading cryptocurrency is on the rise, but less impressive when it is in a downturn like it is now.
That’s uncomfortable enough. But the numbers the company posted for the quarter were even more troubling. Revenue was just over $115 million, down from first quarter 2023 results of $122 million. It also fell short of analysts’ average estimate of $121.7 million.
Non-GAAP (adjusted) net losses widened significantly, reaching nearly $186 million. By comparison, the shortfall of less than $3 million a year ago was relatively painless.
Add more than 25,000 coins to your digital currency pile
At least the Bitcoin pile is growing. MicroStrategy reports that its current coin holdings total 214,400, for which it has paid $7.54 billion. This amounts to $35,180 per Bitcoin. Of that tally, 25,250 Bitcoins were acquired during the quarter at an average price of $65,232. This is higher than the current level due to the coin’s recent decline.
