MicroStrategy (NASDAQ:MSTR) had the misfortune of releasing its latest results at a time when its largest asset was declining.
MicroStrategy is a niche technology company that has transformed itself almost entirely into a primarily institutional business. Bitcoin (CRYPTO:BTC) holder. It released first quarter results at a time when cryptocurrency was in the midst of a crisis. several days of decline. This, combined with generally weak fundamentals, sent MicroStrategy’s stock price down nearly 18% on Tuesday.
Bitcoin blues?
MicroStrategy proudly bills itself as the “largest holding company in Bitcoin,” which is fantastic when the leading cryptocurrency is on the rise, but not so impressive when it’s in the doldrums… like now.
It’s already uncomfortable enough. But the numbers the company reported for the quarter were more uncomfortable. Revenue came in at just over $115 million, down from the first quarter 2023 result of almost $122 million. It also missed the average analyst estimate of $121.7 million.
No-GAAP The (adjusted) net loss widened considerably, landing in a vat of red ink to the tune of nearly $186 million. By comparison, the shortfall of less than $3 million a year ago was relatively painless.
Added over 25,000 coins to the digital currency stack
At least his stack of Bitcoins is growing. MicroStrategy reported that its token holdings now stand at 214,400, for which it paid $7.54 billion. This works out to $35,180 per Bitcoin. Of this total, 25,250 Bitcoins were acquired during the quarter at an average price of $65,232. This is higher than the current level, following the coin’s recent decline.
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Eric Volkman has positions in Bitcoin. The Motley Fool posts and recommends Bitcoin. The Mad Motley has a disclosure policy.
Why MicroStrategy stock fell nearly 18% on Tuesday was originally published by The Motley Fool
