MicroStrategy Stock: $671M Loss Amid Bitcoin Write-Down

MicroStrategy, now rebranding as Strategy, reported a substantial net loss of $670.8 million in its latest quarter, equivalent to $3.03 per share. The significant downturn primarily stems from a $1 billion write-down on the company's extensive Bitcoin holdings. The firm's quarterly revenue declined by 10.34% to $116.07 million compared to the previous year. The stock exhibited notable volatility on Thursday's NASDAQ trading, fluctuating between $344.50 and $328.50, with the current price of $336.62 sitting well below its 52-week peak of $542.85 achieved in November 2024.

Strategic Transformation and Cryptocurrency Focus

The company is doubling down on its position as a "Bitcoin-Treasury-Society" through an aggressive expansion strategy. Following a successful preferred stock offering that raised $584 million, the firm has expanded its Bitcoin holdings to 471,107 units, acquired at an average cost of $62,503 per Bitcoin. The company's cryptocurrency holdings reached a market value of $41.789 billion by year-end. Looking ahead, analysts project continued challenges, forecasting a loss of $0.745 per share for the fiscal year 2025, with the next quarterly results scheduled for May 6, 2025.