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MicroStrategy CEO Michael Saylor speaks during Bitcoin Convention 2021, a cryptocurrency conference held at the Mana Convention Center at Wynwood on June 04, 2021 in Miami, Florida.
Joe Raedle | Getty Images
MicroStrategy shares fell 17.8% on Friday afternoon after the U.S. Securities and Exchange Commission reportedly rejected the company’s bitcoin accounting strategy.
Shares of the business intelligence software company had fallen along with the price of bitcoin, which fell more than 10% on Friday to its lowest level since August. MicroStrategy shares are down 24.7% for the week.
A filing released Thursday showed the SEC rejecting the accounting method MicroStrategy used for bitcoin in its earnings reports.
“We note your response to previous comment 5 and oppose your adjustment for bitcoin depreciation charges in your non-GAAP measures,” the filing reads. “Please revise to remove this adjustment in future filings.”
MicroStrategy started buying bitcoins as part of a capital allocation strategy in 2020, which sets it apart from other companies. Since then, he has been aggressively buying bitcoin, making his stocks a proxy for the cryptocurrency.
At the end of 2021, MicroStrategy held 124,391 bitcoins, acquired for around $3.75 billion at an average price of around $30,159 per bitcoin, CEO Michael Saylor announced on Twitter at the time.
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