MicroStrategy Expects to Post 1Q Loss After Bitcoin Price Slumps

By Dean SealMicroStrategy expects to report a loss for the first quarter and warned of more losses to come as the value of its cryptocurrency holdings falls.The bitcoin-buying software company said Monday that it notched $5.91 billion in unrealized losses on its digital assets for the quarter that ended March 31.That should result in a net loss for the quarter, despite a related $1.69 billion income tax benefit, MicroStrategy said.Shares dropped 11% to $260.92 in premarket trading.The company said it hasn't bought any more bitcoin since the quarter ended. Bitcoin and other cryptocurrency prices have tumbled amid growing fears that President Trump's trade war will push the economy into a recession.MicroStrategy said it may not be able to regain profitability in future quarters, especially if it continues to take big losses on its crypto holdings."A significant decrease in the market value of our bitcoin holdings could adversely affect our ability to satisfy our financial obligations," it said.Write to Dean Seal at [email protected]