MicroStrategy (NASDAQ: MSTR) had the misfortune to report its newest set of earnings at a time when its most essential asset was on the decline.
MicroStrategy is a distinct segment tech firm that has virtually completely reworked itself into principally an institutional Bitcoin (CRYPTO: BTC) holder. It printed first-quarter outcomes at a time when the cryptocurrency was going by means of a number of days of declines. That, compounded with typically weak fundamentals, drove MicroStrategy’s share worth down by virtually 18% on Tuesday.
Bitcoin blues?
MicroStrategy proudly payments itself because the “largest company holder of Bitcoin,” which is improbable when the main crypto is on the rise, however not so spectacular when it is within the doldrums… like now.
That is uncomfortable sufficient. However the numbers the corporate posted for the quarter have been extra uncomfortable. Income got here in at simply over $115 million, which was down from the primary quarter 2023 results of practically $122 million. It additionally did not meet the typical analyst estimate of $121.7 million.
Non-GAAP (adjusted) web loss deepened significantly, touchdown in a vat of crimson ink to the tune of just about $186 million. Compared, the year-ago shortfall of below $3 million was comparatively painless.
Including over 25,000 cash to the digital cash pile
No less than its Bitcoin pile is rising. MicroStrategy reported that its holdings within the coin now complete 214,400, for which it paid $7.54 billion. This works out to $35,180 per Bitcoin. Of that tally, 25,250 Bitcoin have been acquired through the quarter at a mean worth of $65,232. That is greater than the present degree, following the coin’s current decline.
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Eric Volkman has positions in Bitcoin. The Motley Idiot has positions in and recommends Bitcoin. The Motley Idiot has a disclosure policy.
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