BUZZ-Strategy posts $5.9 bln loss as bitcoin price tumbles; MSTR shares slide

Reuters
04-07
BUZZ-<a href="https://laohu8.com/S/MSTR">Strategy</a> posts $5.9 bln loss as bitcoin price tumbles; MSTR shares slide

** Shares of Strategy MSTR.O down 7.3% to $272.07 on Mon after software co said expects to report a Q1 loss as value of its cryptocurrency holdings falls

** Bitcoin proxy formerly known as MicroStrategy said Mon it registered $5.9 bln unrealized loss on its digital assets for qtr ended-Mar

** Co said that should result in Q1 net loss, partially offset by related ~$1.69 bln income tax benefit, as per the SEC filing

** Its outstanding debt was $8.22 bln at end of the qtr, comprising convertible bonds debt, and other long-term indebtedness, co said

** "A significant decrease in the market value of our bitcoin holdings could adversely affect our ability to satisfy our financial obligations," it cited as a risk factor

** Tysons Corner, Virginia-based firm said it didn't purchase any additional bitcoin since end-Mar, and currently owns 528,185 bitcoins at avg purchase price of $67,458

** Last year, MSTR more than doubled its bitcoin holdings via combination of debt and equity deals

** Bitcoin BTC= currently down fractionally around $78,684 after world's largest cryptocurrency hit five-mth low earlier amid global market meltdown in wake of President Trump's sweeping tariffs

** With move on Mon, MSTR shares off ~6% YTD. Stock was trading around $150 a year ago

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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