Why Bitcoin-Linked Stock MicroStrategy Is Sliding After Hours

MicroStrategy Inc MSTR shares are trading lower in Thursday's after-hours session after the company reported weak fourth-quarter earnings results.

What Happened: MicroStrategy reported fourth-quarter revenue of $132.55 million, which beat average analyst estimates of $131.33 million, according to Benzinga Pro. The business intelligence and Bitcoin BTC/USD company reported a quarterly adjusted net loss of $20.51 per share, which missed estimates for a loss of 13 cents per share.

MicroStrategy said earnings were impacted by digital asset impairment losses of $197.6 million.

MicroStrategy ended the quarter with $43.8 million in cash and equivalents, down from $63.4 million year-over-year. The company said it increased its Bitcoin holdings to 132,500 bitcoins during the quarter.

"In 2022, MicroStrategy achieved total revenue growth on a constant currency basis for the fourth quarter as well as the full year on the strength of our cloud business. In the fourth quarter, current subscription billings grew at a double-digit growth rate for the eleventh straight quarter," said Phong Le, president and CEO of MicroStrategy.

MicroStrategy is a business intelligence, mobile software, and cloud-based services company, but more than anything else, it's a bet on Bitcoin. The company will discuss its fourth-quarter results on a conference call beginning at 5 p.m. ET.

Check This Out: Ark's Cathie Wood Says Bitcoin Is Going To $1M, Jim Cramer Says Yeah, And I 'Walked On Water' In The Sea Of Galilee

MSTR Price Action: MicroStrategy has a 52-week high of $522.80 and a 52-week low of $132.56.

The stock was down 3.13% in after-hours at $283 at the time of publication, according to Benzinga Pro.

Photo: Ricardo Goncalves from Pixabay.

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: CryptocurrencyEarningsNewsAfter-Hours CenterMarketsMoversPhong Lewhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!