Strategy posts $5.9 bln loss as bitcoin price tumbles; MSTR shares slide

Shares of Strategy MSTR.O down 7.3% to $272.07 on Mon after software co said expects to report a Q1 loss as value of its cryptocurrency holdings falls

Bitcoin proxy formerly known as MicroStrategy said Mon it registered $5.9 bln unrealized loss on its digital assets for qtr ended-Mar

Co said that should result in Q1 net loss, partially offset by related ~$1.69 bln income tax benefit, as per the SEC filing

Its outstanding debt was $8.22 bln at end of the qtr, comprising convertible bonds debt, and other long-term indebtedness, co said

"A significant decrease in the market value of our bitcoin holdings could adversely affect our ability to satisfy our financial obligations," it cited as a risk factor

Tysons Corner, Virginia-based firm said it didn't purchase any additional bitcoin since end-Mar, and currently owns 528,185 bitcoins at avg purchase price of $67,458

Last year, MSTR more than doubled its bitcoin holdings via combination of debt and equity deals

Bitcoin BTC= currently down fractionally around $78,684 after world's largest cryptocurrency hit five-mth low earlier amid global market meltdown in wake of President Trump's sweeping tariffs

With move on Mon, MSTR shares off ~6% YTD. Stock was trading around $150 a year ago