MicroStrategy Q1 Operating Loss of $53.1M After Bitcoin Holdings Impairment Charge of $191.6M

MicroStrategy
(MSTR)
reported
a
net
operating
loss
of
$53.1
million,
or
$3.09
per
share,
in
the
first
quarter
after
taking
a
digital
asset
impairment
charge
of
$191.6
million,
according
to
a

Monday
afternoon
press
release.

While
some
had
expected
the
company
might
adopt
the
new
digital
asset
fair
value
accounting
standard,
and
thus
report
a
sizable
profit
thanks
to
bitcoin’s

(BTC)
first
quarter
rally,
the
company
elected
not
to
do
so.
By
the
old
standard,
MicroStrategy
at
quarter’s
end
valued
its
bitcoin
holdings
at
a
price
of
$23,680
each,
or
$5.1
billion,
rather
than
March’s
closing
price
of
$71,028,
or
$15.2
billion.

08:42

Bitcoin
Ecosystem
Developments
in
2023
as
BTC
Hits
Fresh
2023
High
01:10

Bitcoin
Extends
Rally
as
$1B
in
BTC
Withdrawals
Suggests
Bullish
Mood
1:02:43

Why
Financial
Advisors
Are
So
Excited
About
a
Spot
Bitcoin
ETF
02:21

When
Could
Traders
See
the
Arrival
of
a
Spot
Bitcoin
ETF?

The
company
also
announced
a
small
April
addition
of
122
tokens
to
its
bitcoin
stack,
bringing
total
holdings
to
214,400.
That
would
be
valued
at
$13.5
billion
at
bitcoin’s
current
price
of
about
$63,000.

For
all
of
2024
so
far,
MSTR
has
acquired
25,250
bitcoins
for
$1.65
billion,
or
an
average
price
of
$65,232
each.

Shares
are
lower
by
3.3%
in
after
hours
trading.

Speaking
on
the
earnings
call,
CFO
Andrew
Kang
said
the
company
fully
plans
to
adopt
the
new
digital
asset
fair
value
accounting
rule
and
is
currently
evaluating
the
best
time
to
do
so.
The
Financial
Financial
Accounting
Standards
Board
(FASB)
has
mandated
that
the
new
rule
be
implemented
by
Jan.
1,
2025,
but
early
adoption
is
allowed.