Quarterly Financial Results
MicroStrategy (MSTR) posted a net loss of $12.4 billion for Q4 2023, or $42.93 per share, driven primarily by a steep decline in Bitcoin’s price.
- Bitcoin fell from a record above $126,000 in October to roughly $63,000 at quarter‑end.
- Unrealized loss on the company’s BTC portfolio approached $9 billion.
- The firm added about 35,000 BTC during the three‑month period, bringing total holdings to roughly $45.4 billion.
Impact on Share Price
Following the earnings release, MSTR shares slumped more than 17% to $107, their lowest level in 18 months. Over the past six months the stock has dropped about 71%.
- Shares are down 76% from the $457 peak recorded last year.
- The decline outpaced Bitcoin’s 44% six‑month slide, reflecting investor frustration with the leveraged exposure.
Company’s Financial Position
MicroStrategy maintains a cash cushion of $2.25 billion, sufficient to cover preferred‑stock dividends for roughly 30 months.
- Its variable‑rate preferred share (STRC) pays 11.25% monthly and is valued at $3.4 billion.
- Enterprise value now roughly equals the value of its Bitcoin holdings, yielding an mNAV of 1.1.
Outlook and Risks
Analysts are watching two key risks: a potential sale of BTC to raise cash and the continued volatility of the cryptocurrency market.
- Prediction‑market traders on Myriad see a 32% chance that MicroStrategy will sell some Bitcoin this year, up from 10% a week earlier.
- Any large‑scale BTC liquidation could further depress the share price and erode the company’s “digital credit” narrative.