Bitcoin Market Turbulence and MicroStrategy's Share Price Slide

By: Eliza Bennet

Market Unsettled As Bitcoin Drops And MicroStrategy Share Price Declines

As Bitcoin's value tumbled to dip below the 60k mark, MicroStrategy - a business intelligence firm that holds around 1% of the total Bitcoin supply - saw a 15% decrease in its share price. In absence of adopting new FASB (Financial Accounting Standards Board) standards, the firm’s decision caused MSTR to incur a substantial $191 million asset impairment charge.

Despite purchasing an additional $1.65 billion worth of Bitcoin, bringing its total holdings to a staggering 214,400 BTC in the first quarter of 2024, MicroStrategy’s share price has steadily declined, and now hovers around $1100. The drop is attributed to the lack of FASB adjustments, resulting in a bottom-line impact of around $11 per share.

However, it's worth noting that if Bitcoin were to reach a higher value of $100,000 or even $250,000 per coin, it would greatly boost the value of MicroStrategy’s Bitcoin assets. Even though recent U.S. economic data is hinting at a more hawkish forward guidance from the Federal Reserve, seasoned market watchers believe that the market corrections are par for the course, and optimism remains for digital currencies.