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MicroStrategy’s Bitcoin Binge May Trigger $77 Million Writedown

June 21, 2021, 7:11 PM

MicroStrategy Inc.’s most recent crypto spending spree should deliver another hit to the company’s bottom line.

The Tysons Corner, Virginia-based enterprise software company said Monday that it purchased an additional 13,005 Bitcoins for about $489 million in cash at an average price of about $37,617 per Bitcoin. The news did little to slow a dramatic slide in the world’s largest cryptocurrency, with prices slumping nearly 10% to roughly $32,300.

As a result of the freefall, MicroStrategy may have to mark down the value of the Bitcoins it just purchased. Accounting rules dictate that the firm will have to write down ...