Crypto
MSTR Stock Whipsaws as MicroStrategy Reports Massive Bitcoin Loss
MicroStrategy stock is trending up by 9.18% after reporting an $8.3B GAAP net loss from unrealized Bitcoin markdowns, even as it scaled holdings to roughly 846,000 BTC and raised over $4.2B in fresh equity capital.
The company's balance sheet shows a lot of liquidity and relatively modest leverage given its massive Bitcoin hoard, with total assets above $52B and a current ratio around 5.4.
MicroStrategy actively traded its BTC stack, selling more than 3,300 BTC for over $213M, while still holding more than 840,000 BTC acquired for upward of $63B.
The company's management repurchased about 288,930 preferred shares for $25M and plans to keep the 12% dividend until that preferred stock trades near $100.