Bloomberg Tax
Jan. 21, 2022, 8:39 PMUpdated: Jan. 21, 2022, 11:02 PM

MicroStrategy Plummets as SEC Rejects Its Bitcoin Accounting (3)

Nicola M. White
Nicola M. White
Reporter

MicroStrategy Inc. can’t strip out Bitcoin’s wild swings from the unofficial accounting measures it touts to investors, the SEC said.

Bad news for MicroStrategy was compounded as the company’s shares fell as much as 20% Friday, the biggest intraday collapse since Feb. 23. Its stock closed at $375.89, down nearly 18%. Bitcoin also tumbled, and was down more than 7% around 4:15 p.m. in New York.

The enterprise software maker, which said in 2020 that buying and holding Bitcoin was one of its key business strategies, used non-GAAP measures in its Form 10-Q for the quarter that ended Sept. 30, ...

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