Shares of MicroStrategy Inc. sank Wednesday, after the software company-slash-bitcoin play reported a surprisingly large quarterly loss, as a near $150 million loss booked on its cryptocurrency holdings offset strength in its software business.
The company MSTR, -6.48% reported late Tuesday that it swung to a net loss of $89.98 million, or $8.43 a share, from net income of $2.66 million, or 27 cents a share, in the same period a year ago. That compared with the average analyst profit estimate of 89 cents a share, according to FactSet. The stock dropped 5.4% in afternoon trading. It has plunged 55.6% over the past three months, while the SPDR S&P Software & Services exchange-traded fund XSW, -1.95% has shed 19.2%, bitcoin has tumbled 40.4% and the S&P 500 index SPX, +0.94% has eased 0.6%.
Chief Executive Saylor talked on the call about how he thought investors should view MicroStrategy’s stock as an attractive option to other bitcoin investments, such as exchange-traded funds. “When you’re considering MicroStrategy, clearly you can look at us as a software company and I think people are going to evaluate our revenue growth rate,” Saylor said. “They’re going to look at our ability to generate free cash flow, our efficiency.”
“[W]e haven’t really decided on anything and we don’t have any particular intent right now,” Saylor said on the analysts call. “But the option to pursue either leverage or yield, or other kinds of strategic partnerships using our billions of dollar of bitcoin, I think, is very important…and it’s an important benefit to our shareholders, and it’s a way in which we will look to build shareholder value.
Micro strategy is what’s known as a “chicken shit” business.
Live by the sword die by it saylor maybe he and CathieDWood are good friends? $mstr was a monster in the early 2000s now it's a Bitcoin tracker