CDS Crypto News MicroStrategy Q1 Net Loss: Company’s Loss Reaches $53.1 Million, but Keeps Accumulating Bitcoin
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MicroStrategy Q1 Net Loss: Company’s Loss Reaches $53.1 Million, but Keeps Accumulating Bitcoin

MicroStrategy Q1 net loss notwithstanding, Bitcoin accumulation will continue.

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MicroStrategy Q1 Net Loss: Company's Loss Reaches $53.1 Million, but Keeps Accumulating Bitcoin

Crypto News – Despite reporting a net loss of $53.1 million in the first quarter of 2024, MicroStrategy kept piling on more Bitcoin in April.

MicroStrategy Q1 Net Loss: Company’s Loss Reaches $53.1 Million, but Keeps Accumulating Bitcoin

The company suffered a $191.6 million digital asset impairment loss during the quarter, which increased tenfold from the first quarter of 2023 to the net loss. According to MicroStrategy’s Q1 earnings report, revenue also decreased 5.5% from the first quarter of 2023 to $115.2 million.

The new digital asset fair value accounting standard, which would have taken into account the 65% increase in the fair value (or market value) of Bitcoin during the quarter, has not yet been adopted by the company. Because of this, MicroStrategy’s carrying value of Bitcoin was valued at $5.07 billion using the conventional accounting method, as opposed to $15.2 billion if the fair value approach had been used.

Shares Fell 3.3% After the Announcement

The financial statement reveals that in April, the software company that later became a “Bitcoin development company” already purchased another 122 Bitcoin for $7.8 million. With an average purchase price of $35,180, it currently possesses 214,400 Bitcoin, valued at $13.5 billion.

The president and CEO of MicroStrategy, Phong Le, stated that the company collected $1.5 billion through two convertible note debt offerings to purchase an additional 25,250 Bitcoin in Q1, marking the company’s 14th straight quarter of adding more Bitcoin to its balance sheet. Google Finance reports that following the announcement, MicroStrategy’s stock dropped 3.3% in after-hours trading.

MicroStrategy Q1 Net Loss: Company's Loss Reaches $53.1 Million, but Keeps Accumulating Bitcoin
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lectertodd

Lectertodd is 25 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

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