From Yahoo Finance: 2025-04-07 09:50:00

Michael Saylor’s Strategy faces a $5.9 billion loss in Q1 after accounting change values Bitcoin at market prices. Shares of MicroStrategy fell 14% as Bitcoin erased gains since Trump’s election. Strategy classifies Bitcoin as intangible assets, resulting in losses due to price drops. Saylor vows not to sell tokens.

First-quarter loss partly due to $1 billion paper losses from recent spending spree. Strategy held $41.8 billion of Bitcoin, dropping by nearly $5 billion in Q1. Retained earnings to see a $13 billion boost from new accounting method. Strategy was first public company to embrace Bitcoin in 2020.

Saylor sold shares to buy Bitcoin, leading to stock surge of over 2,200%. Hedge funds driving demand for convertible debt, betting on stock’s volatility. Strategy’s shares received a sell rating as Bitcoin’s price decline affects stock value. Market for securities to fund Bitcoin purchases is saturated.

Read more: Saylor’s Strategy to Register $5.9 Billion Loss After Accounting Change