Strategy (MSTR) on Monday reported $5.91 billion in unrealized loss on its digital holdings for the quarter ending March 31, likely resulting in a net loss despite a $1.69 billion income tax benefit.
The loss stems from the company's adoption of Accounting Standards Update No. 2023-08, effective Jan. 1, which requires changes in the fair value of crypto assets to be reported in the consolidated statements of operations and reflected in the consolidated balance sheets at the end of each reporting period, the company said in a regulatory filing.
In addition to the unrealized loss, Strategy said it neither sold any class A common stock or 8.00% Series A perpetual strike preferred stock nor acquired additional bitcoin in the week after the quarter ended.
Shares of Strategy were down 9% in recent Monday trading.
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