NEW YORK, Monday, May 6, 2024 – MicroStrategy Incorporated (MSTR), known for its aggressive Bitcoin holdings, reported a net loss of $53.1 million for the first quarter of 2024, as reported in the Q1 2024 Financial Report.
This translates to $3.09 per share.
The loss stems primarily from a $191.6 million digital asset impairment charge, reflecting a decline in the company’s Bitcoin holdings’ value compared to their purchase price.
MicroStrategy did not adopt the new fair value accounting standard for digital assets, which would have potentially shown a profit based on Bitcoin’s price surge in Q1.
The company’s core business, providing business intelligence software, also saw a minor decline in revenue, reaching $115.2 million, down 5.5% year-over-year.
Despite the net loss, MicroStrategy continued its strategy of accumulating Bitcoin. The company purchased additional Bitcoin during April, demonstrating its long-term bullish stance on the cryptocurrency.
Financial analysts remain divided on MicroStrategy’s approach. Some praise the company’s commitment to Bitcoin, viewing it as a potential hedge against inflation.
Others express concern about the volatility of Bitcoin and the potential for further impairment charges.
