MicroStrategy’s shares experienced a sharp decline on Thursday, falling over 15% due to heavy selling pressure in the market. This drop occurred amid Bitcoin’s weak performance and ahead of the company’s quarterly earnings report, scheduled for release after market close. Analysts anticipate that MicroStrategy’s stock could see volatility between 8.3% and 8.7% following the earnings announcement. The company’s earnings call is set for 5 PM Eastern Time today and will be streamed live on Bitcoin Magazine’s YouTube channel.
This week has been particularly challenging for MicroStrategy, with its share price falling from near $150 to below $110. This represents one of the largest daily declines among Bitcoin-linked equities in recent months, raising concerns among institutional and retail investors alike. The decline in Bitcoin’s price, currently around $66,000, has caused unrealized losses on MicroStrategy’s balance sheet, as the company holds most of its assets in cryptocurrencies. Investors and analysts remain apprehensive about the impact of Bitcoin’s price fluctuations on the company’s financial statements, given that MicroStrategy reports its assets using fair value accounting.
Michael Saylor, MicroStrategy’s chairman, has reiterated that the company will not sell its Bitcoin holdings and intends to continue purchasing despite the market downturn. He emphasized that holding and increasing investment remains a prudent strategy despite the price declines. Over recent months, MicroStrategy has pursued an asset accumulation strategy despite the overall weakness in the cryptocurrency market, making the upcoming quarterly earnings report a critical moment for investors.
Source: bitcoinmagazine
