The firm endorsed a digital asset bill following a record net loss, seeking regulatory clarity as shares near 52-week lows.
MicroStrategy endorsed the CLARITY Act on Friday, a day after reporting an $8.22 billion net loss for the second quarter. The bill aims to redefine U.S. digital asset regulation by splitting oversight between the SEC and CFTC, potentially easing funding challenges for the firm.
The quarterly loss, driven by an $8.32 billion write-down, reversed a $32.60 per-share profit from the prior year. Shares closed at $93.28, down 4.56%, near the 52-week low of $81.81. Analysts at Clear Street cut their price target to $201 from $240.
Management’s endorsement of the bill provides a new narrative amid declining share performance and rising dividend obligations. The firm raised $17.06 billion via equity programs this year, with $7.53 billion from preferred issuance.