MicroStrategy expects to report a net loss for the first quarter, driven by nearly $6 billion in unrealized losses on its Bitcoin holdings, according to The Wall Street Journal. Shares dropped over 10% in midday trading. MicroStrategy amassed a large Bitcoin stake by using proceeds from convertible bond sales to buy the cryptocurrency. The company hasn’t bought more bitcoin since the quarter ended, as crypto prices tumbled amid fears Trump’s trade war could trigger a recession. MicroStrategy warned that continued declines in crypto prices could hinder its return to profitability and impact its ability to meet financial obligations.
