MicroStrategy shares drop on bitcoin’s slide, SEC rejection of company’s crypto accounting
MicroStrategy CEO Michael Saylor speaks at the Bitcoin 2021 Convention, a crypto-currency conference held at the Mana Convention Center in Wynwood on June 04, 2021 in Miami, Florida.
Joe Raedle | Getty Images
Shares of MicroStrategy tumbled 17.8% Friday afternoon after the U.S. Securities and Exchange Commission reportedly rejected the company’s bitcoin accounting strategy.
The business-intelligence software company’s stock had been falling in tandem with the price of bitcoin, which dropped more than 10% Friday to its lowest point since August. MicroStrategy shares are down 24.7% for the week.
A filing released Thursday showed the SEC rejecting the accounting method MicroStrategy was using for bitcoin in its earnings reporting.
“We note your response to prior comment 5 and we object to your adjustment for bitcoin impairment charges in your non-GAAP measures,” the filing said. “Please revise to remove this adjustment in future filings.”
MicroStrategy began buying bitcoin as part of a capital allocation strategy in 2020, setting it apart from other companies. It has been aggressively buying bitcoin ever since, making its shares a proxy for the cryptocurrency.
As of the end of 2021, MicroStrategy held 124,391 bitcoins, acquired for roughly $3.75 billion at an average price of about $30,159 per bitcoin, CEO Michael Saylor announced on Twitter at the time.
The post MicroStrategy shares drop on bitcoin’s slide, SEC rejection of company’s crypto accounting appeared first on Chop News.
from Chop News https://ift.tt/33USeSI
Post a Comment