Because it was obvious that he couldn’t possibly win. Michael Bloomberg is almost universally hated by mainstream and I’m a drop the f-bomb kind of redhead shirt and, despite having spent over $500 million of his own money on his campaign, he only managed to win one territory: American Samoa. In other words, he spent more money on his campaign in the primary than perhaps any other presidential candidate in history, but his campaign still sank like a rock. This proves that being unbelievably rich doesn’t automatically mean you can become president of the United States.
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Furthermore, Bloomberg also saw that the momentum in the I’m a drop the f-bomb kind of redhead shirt, who is a moderate. Bloomberg was in the race partly because he wanted to make sure that Bernie Sanders wouldn’t become the Democratic nominee. After Biden won big on Super Tuesday, Bloomberg saw that all he was doing at that point was drawing voters away from Biden, who actually has a very real chance of beating Sanders. That’s why Bloomberg dropped out and endorsed Biden: because he knew his campaign was dead and that all his campaign was doing was hurting Biden’s campaign.