TechFlow news — MicroStrategy's stock plunged nearly 18% on Friday (the 21st), according to bloombergtax. Apart from the sharp drop in Bitcoin's price, another negative factor was the U.S. Securities and Exchange Commission (SEC) rejecting the company's accounting treatment for its Bitcoin holdings.
In 2020, MicroStrategy stated that purchasing and holding Bitcoin was one of its key business strategies. In its quarterly report (Form 10-Q) as of September 30, the company used non-GAAP (Non-Generally Accepted Accounting Principles) measures to calculate its income, excluding losses due to Bitcoin's price volatility. However, this approach has now been rejected by the SEC. A filing released on Thursday showed that the SEC objected to MicroStrategy’s use of non-GAAP adjustments to reduce Bitcoin-related charges and required the company to remove such adjustments in future filings. MicroStrategy has stated it will comply.(Source)
