MicroStrategy, the largest publicly traded corporate holder of Bitcoin, reported a first-quarter 2024 net loss of $53.1 million, but the company continued to accumulate more Bitcoin in April.
The net loss occurred as the company recorded a digital asset impairment charge of $191.6 million during the quarter, a tenfold increase from Q1 2023. Revenue also declined by 5.5% year-over-year to $115.2 million, according to MicroStrategy’s Q1 financial filing.
However, the company has yet to adopt the new accounting standard for digital asset fair value, which would have recognized a 65% increase in the fair value (or market value) of its Bitcoin.
MicroStrategy reported the carrying value of its Bitcoin at $5.07 billion under traditional accounting methods, significantly lower than the $15.2 billion it would report under a fair value method. Despite advocating for the new standard from FASB, the rule change will not occur until after the end of the current reporting period.
Meanwhile, MircoStrategy purchased an additional 122 Bitcoin in April for $7.8 million.
The firm now holds 214,400 Bitcoin, worth $13.5 billion, acquired at an average purchase price of $35,180.
