MicroStrategy CEO Michael Saylor speaks on the Bitcoin 2021 Convention, a crypto-currency convention held on the Mana Convention Center in Wynwood on June 04, 2021 in Miami, Florida.
Joe Raedle | Getty Images
Shares of MicroStrategy tumbled 17.8% Friday afternoon after the U.S. Securities and Exchange Commission reportedly rejected the company’s bitcoin accounting technique.
The business-intelligence software program company’s inventory had been falling in tandem with the value of bitcoin, which dropped more than 10% Friday to its lowest level since August. MicroStrategy shares are down 24.7% for the week.
A submitting launched Thursday confirmed the SEC rejecting the accounting methodology MicroStrategy was utilizing for bitcoin in its earnings reporting.
“We be aware your response to prior remark 5 and we object to your adjustment for bitcoin impairment fees in your non-GAAP measures,” the submitting stated. “Please revise to take away this adjustment in future filings.”
MicroStrategy started shopping for bitcoin as half of a capital allocation technique in 2020, setting it other than different corporations. It has been aggressively shopping for bitcoin ever since, making its shares a proxy for the cryptocurrency.
As of the tip of 2021, MicroStrategy held 124,391 bitcoins, acquired for roughly $3.75 billion at a mean worth of about $30,159 per bitcoin, CEO Michael Saylor announced on Twitter at the time.