MicroStrategy (NASDAQ:MSTR) was unlucky to report its latest earnings figures at a time when its most important asset was in decline.
MicroStrategy is a niche technology company that has almost completely transformed itself into an institutional company Bitcoin (CRYPTO: BTC) holder. It released its first quarter results at a time when cryptocurrency was making its breakthrough multiple days of declines. That, combined with generally weak fundamentals, sent MicroStrategy’s stock price down nearly 18% on Tuesday.
Bitcoin blues?
MicroStrategy proudly bills itself as the “largest corporate holder of Bitcoin,” which is great when the leading crypto is on the rise, but not so impressive when it’s in the doldrums… like now.
That’s uncomfortable enough. But the numbers the company published for the quarter were more uncomfortable. Revenue came in at just over $115 million, down from the first quarter 2023 result of nearly $122 million. It also fell short of the average analyst estimate of $121.7 million.
Non-GAAP (adjusted) net loss widened significantly, landing in a vat of red ink to the tune of nearly $186 million. By comparison, last year’s sub-$3 million deficit was relatively painless.
More than 25,000 coins added to the digital money stack
At least the Bitcoin pile is growing. MicroStrategy reported that it now has 214,400 coins in the mint, for which it paid $7.54 billion. This amounts to $35,180 per Bitcoin. Of that total, 25,250 Bitcoins were purchased during the quarter at an average price of $65,232. That is higher than the current level, after the recent decline of the currency.
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Eric Volkman has positions in Bitcoin. The Motley Fool holds and recommends positions in Bitcoin. The Motley Fool has a disclosure policy.
Why MicroStrategy Stock Plummeted Nearly 18% on Tuesday was originally published by The Motley Fool
