MicroStrategy (MSTR) Shares Come Under Pressure After SEC Pushes Back Against Bitcoin Impairments, BTIG Sees No Impact to Fundamental Value
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BTIG analyst Mark Palmer reiterated a Buy rating and $950.00 price target on MicroStrategy (NASDAQ: MSTR) after shares took another leg lower after the SEC gave pushback for Bitcoin related impairments in Non GAAP accounting. Shares had been plummeting on the falling value of Bitcoin and this adds another dimension to the story.
The analyst stated "MSTR during 3Q21 recorded an impairment on its bitcoin holdings of $65.2mm, which was down from the $424.8mm impairment it had logged during the more volatile 2Q21. As a result, the company’s total impairments since it launched its bitcoin acquisition strategy in August 2020 increased to $754.7mm." He went on to comment "we view the impact of the charges stemming from such impairments as essentially meaningless to MSTR’s inherent value, which stems from the actual value of its bitcoin holdings as well as the value of its business intelligence software unit. While the impairments create an unfavorable optic that business media has tended to emphasize in reports reacting to the company’s quarterly prints, we believe the market has largely dismissed the impairment figures as noise."
Shares of MicroStrategy closed at $375.89 yesterday.
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Related EntitiesDefinitive Agreement, Bitcoin, BTIG
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