2024

Bitcoin

MicroStrategy, the largest corporate holder of Bitcoin,&nbsp;reported a net loss of $53.1 million in the first quarter of 2024, but the firm continued to stack more Bitcoin in April.
The net loss came as the firm recorded a $191.6 million digital asset impairment loss in the quarter, up 10 times from the first quarter of 2023. Revenue also fell 5.5% compared to the first quarter of 2023, reaching $115.2 million, <a href="https://assets.contentstack.io/v3/assets/bltb564490bc5201f31/blt18300cbd01bc3704/662ff88b51b16f0d88c50de2/microstrategy-announces-first-quarter-2024-financial-results-now-holds-214400-btc_04-29-2024.pdf" target="_blank" rel="noopener nofollow">according</a> to MicroStrategy’s Q1 results filing. 
However, the firm has yet to adopt the new digital asset fair value accounting standard, which would have considered the 65% increase in fair value (or market value) of Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) during the quarter. 
As a result, MicroStrategy’s carrying value of Bitcoin was marked $5.07 billion at $23,680 per Bitcoin per the traditional accounting method, instead of $15.2 billion if it had taken the fair value approach. 
This is despite the firm <a href="https://www.microstrategy.com/bitcoin/documents/letter-to-fasb-fair-value-accounting-for-crypto-assets" target="_blank" rel="noopener nofollow">writing</a> a letter to the Financial Accounting Standards Board (FASB) in May 2023 in support of the new standard. About seven months later, the FASB amended its rules to <a href="https://www.fasb.org/news-and-meetings/in-the-news/fasb-issues-standard-to-improve-the-accounting-for-and-disclosure-of-certain-crypto-assets-397718" target="_blank" rel="noopener nofollow">mandate</a> fair value reporting of digital assets for fiscal years after Dec. 15, 2024.
Meanwhile, the software firm turned “Bitcoin development company” has already bought another 122 Bitcoin for $7.8 million in April, the financial statement shows.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-04/15c8800b-788e-423a-ab7b-9a111228f72b.png" alt="" title="">
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 Source: <a href="https://x.com/saylor/status/1785037831175630938" target="_blank" rel="noopener nofollow">Michael Saylor</a>
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It now holds 214,400 Bitcoin, worth $13.5 billion, bought at an average purchase price of $35,180.
The firm raised $1.5 billion from <a href="https://cointelegraph.com/news/microstrategy-sells-604m-notes-buy-btc">two convertible note debt offerings</a> to acquire another 25,250 Bitcoin in Q1, making it the firm’s 14th consecutive quarter of adding more Bitcoin to its balance sheet, noted Phong Le, MicroStrategy’s president and CEO. 
Related: <a href="https://cointelegraph.com/news/microstrategy-sells-604m-notes-buy-btc">MicroStrategy sells another $604M of notes to buy 9K Bitcoin</a>
MicroStrategy stock fell 3.3% in after-hours trading after the announcement, <a href="https://www.google.com/finance/quote/MSTR:NASDAQ" target="_blank" rel="noopener nofollow">according</a> to Google Finance.
Bitcoin’s 65% increase sparked a <a href="https://cointelegraph.com/news/microstrategy-listing-sp-500-index-exposes-millions-bitcoin">near-unprecedented MicroStrategy rally</a> in the first quarter, surging over 170% to $1704 by the end of March.
However, MicroStrategy’s stock has since fallen to $1,292, <a href="https://www.google.com/finance/quote/MSTR:NASDAQ" target="_blank" rel="noopener nofollow">according</a> to Google Finance.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-04/b854ff53-4d45-4170-a09d-648afdf507e1.png" alt="" title="">
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 MicroStrategy’s change in share price over the last six months. Source: Google Finance
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Magazine: <a href="https://cointelegraph.com/magazine/get-bitcoin-or-die-tryin-why-hip-hop-stars-love-crypto/">Get Bitcoin or die tryin’: Why hip hop stars love crypto</a>

MicroStrategy Q1 net loss hits $53.1M, but Bitcoin buying spree continues

Cointelegraph

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