{"id":293031,"date":"2024-04-30T22:48:02","date_gmt":"2024-04-30T17:18:02","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=293031"},"modified":"2024-04-30T22:48:02","modified_gmt":"2024-04-30T17:18:02","slug":"15-decline-in-mstr-share-price-amid-non-adoption-of-new-fasb-bitcoin-standards-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/15-decline-in-mstr-share-price-amid-non-adoption-of-new-fasb-bitcoin-standards-crypto-news\/","title":{"rendered":"15% decline in MSTR share price amid non-adoption of new FASB Bitcoin standards &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<article>\n<h2>Quick Take<\/h2>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\/insights\/despite-market-volatility-microstrategys-btc-per-share-reaches-near-record-levels\/\">MicroStrategy<\/a>, the business intelligence firm, has further solidified its position as a Bitcoin corporate treasury, holding approximately 1% of the total Bitcoin supply. During the first quarter of 2024, MicroStrategy <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\/microstrategy-bought-7-8-million-of-bitcoin-since-january-now-holds-214400-btc\/\">acquired an additional $1.65 billion<\/a> worth of Bitcoin, bringing its total holdings to a staggering 214,400 BTC.<\/p>\n<p>While there was speculation that MicroStrategy would adopt the updated <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\/new-fasb-rules-pave-the-way-for-bitcoin-on-corporate-balance-sheets-at-fair-value\/\">FASB (Financial Accounting Standards Board)<\/a> rules, which streamline Bitcoin accounting, the company ultimately decided against it.<\/p>\n<p>According to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/x.com\/PunterJeff\/status\/1785071061362749748\">PunterJeff<\/a>, a risk and capital advisor and long-standing MicroStrategy bull, due to the absence of FASB adjustments, MSTR incurred a $191 million asset impairment charge in accordance with GAAP accounting principles. This resulted in a bottom-line impact of approximately\u2014$11 per share. Isolating this charge from the P&amp;L statement transforms the EPS from (-$3) to +$8.<\/p>\n<figure id=\"attachment_415849\" aria-describedby=\"caption-attachment-415849\" style=\"width: 1292px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-415849\" class=\"wp-caption-text\">MicroStrategy Bitcoin Net Asset Value: (Source: MicroStrategy Q1 Earnings)<\/figcaption><\/figure>\n<p>One standout highlight from the Q1 earnings presentation was the bullish trajectory of MSTR\u2019s Bitcoin net asset value (Bitcoin NAV = Bitcoin Holdings Market Value minus Total Outstanding Debt).<\/p>\n<p>Exploring hypothetical scenarios with potential BTC price increases:<\/p>\n<p>If BTC reached $100,000, this would signify a 56% increase. At $250,000 per coin, the appreciation would skyrocket to 290%. Considering MSTR\u2019s current leverage, a $100,000 BTC price would lead to a 75% appreciation. This appreciation trajectory continues to grow incrementally with higher leverage.<\/p>\n<p>As of April 30, the share price has declined by 15%, currently trading around $1,100.<\/p>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Quick Take MicroStrategy, the business intelligence firm, has further solidified its position as a Bitcoin corporate treasury, holding approximately 1% of the total Bitcoin supply. During the first quarter of 2024, MicroStrategy acquired an additional $1.65 billion worth of Bitcoin, bringing its total holdings to a staggering 214,400 BTC. While there was speculation that MicroStrategy [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":293032,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-293031","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/293031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=293031"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/293031\/revisions"}],"predecessor-version":[{"id":293034,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/293031\/revisions\/293034"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/293032"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=293031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=293031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=293031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}