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.

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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.