MicroStrategy, a Bitcoin (BTC) development company, disclosed a net loss of $53.1 million for the first quarter of 2024, equivalent to $3.09 per share, as reported on Monday.
In their earnings report, the software firm attributed operating expenses to impairment losses on digital assets, amounting to $191.6 million in Q1 2024 compared to $18.9 million in Q1 2023. Impairment losses reflect a decline in asset value below its cost basis.
Revenue for the period totaled $115.2 million, marking a 5% decrease year-over-year. Operating expenses surged to $288.9 million in Q1 2024, representing a 152.8% increase from Q1 2023.
MicroStrategy’s primary asset holding remains Bitcoin, with a total of 214,400 Bitcoins valued at $7.54 billion, or $35,180 per Bitcoin, as of April 26, 2024. The company acquired an additional 25,250 Bitcoins since the end of Q4, amounting to $1.65 billion, or $65,232 per Bitcoin.
Andrew Kang, MicroStrategy’s Chief Financial Officer, highlighted the successful execution of their capital markets strategy in Q1, raising over $1.5 billion through convertible debt offerings and adding more Bitcoin to their balance sheet for the 14th consecutive quarter.
Acknowledging the impact of spot Bitcoin exchange-traded funds (ETFs) approval in the U.S., MicroStrategy noted its role in Bitcoin price appreciation, increased institutional demand, and regulatory clarity.
Michael Saylor, the executive chairman and co-founder of MicroStrategy, expressed his stance on holding Bitcoin, emphasizing that he sees no reason to sell any of his Bitcoin in the near future. He views the approval of spot Bitcoin ETFs as a positive development that will benefit all market participants, using the metaphor of a rising tide lifting all boats.
