MicroStrategy stock falls 17% after SEC rejected Bitcoin accounting strategy
MicroStrategy (MSTR) stock fell 17.8% on Friday (Jan. 21), its lowest since August, its biggest one-day decline since February 23, after the U.S. Securities and Exchange Commission (SEC) revised the company’s Bitcoin accounting strategy had declined.
MSTR. Price chart | Source: Trade View
A filing released on Thursday, January 20 shows that the SEC rejects the accounting method MicroStrategy uses for Bitcoin in its earnings statement.
“We note the company’s response to the previous comment 5 and oppose the company’s adjustment of the bitcoin amortization fee in their existing non-GAAP metrics adjustment method. Please amend to remove this customization for future filings,” the SEC filing reads.
MicroStrategy has started and is actively buying Bitcoin as part of its 2020 capital allocation strategy, which differentiates it from other companies, and its shares have become a proxy for the cryptocurrency.
At the end of 2021, MicroStrategy held 124,391 bitcoins after spending about $3.75 billion in cash for an average purchase of about $30,159, CEO Michael Saylor announced on Twitter at the time.
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MicroStrategy stock falls 17% after SEC rejected Bitcoin accounting strategy
MicroStrategy (MSTR) stock fell 17.8% on Friday (Jan. 21), its lowest since August, its biggest one-day decline since February 23, after the U.S. Securities and Exchange Commission (SEC) revised the company’s Bitcoin accounting strategy had declined.
MSTR. Price chart | Source: Trade View
A filing released on Thursday, January 20 shows that the SEC rejects the accounting method MicroStrategy uses for Bitcoin in its earnings statement.
“We note the company’s response to the previous comment 5 and oppose the company’s adjustment of the bitcoin amortization fee in their existing non-GAAP metrics adjustment method. Please amend to remove this customization for future filings,” the SEC filing reads.
MicroStrategy has started and is actively buying Bitcoin as part of its 2020 capital allocation strategy, which differentiates it from other companies, and its shares have become a proxy for the cryptocurrency.
At the end of 2021, MicroStrategy held 124,391 bitcoins after spending about $3.75 billion in cash for an average purchase of about $30,159, CEO Michael Saylor announced on Twitter at the time.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
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