MicroStrategy (MSTR) reported a net operating loss of $53.1 million, or $3.09 per share, in the first quarter after recording a $191.6 million digital asset impairment charge, according to a press release Monday afternoon. .
Some expected the company to adopt a new digital asset fair value accounting standard and report huge profits due to Bitcoin (BTC)'s first-quarter rally, but the company won't. I chose that. Under the old standard, MicroStrategy valued his Bitcoin holdings at $23,680 ($5.1 billion) per coin at the end of the quarter, rather than the March closing price of $71,028 ($15.2 billion). Ta.
The company also announced a small addition of 122 tokens to Bitcoin Stack in April, bringing its total holdings to 214,400. This is equivalent to $13.5 billion at Bitcoin's current price of about $63,000.
So far in 2024, MSTR has acquired 25,250 Bitcoins for $1.65 billion, at an average price of $65,232 each.
The stock fell 3.3% in after-hours trading.
Chief Financial Officer Andrew Kang said on the earnings call that the company has full plans to implement new digital asset fair value accounting rules and is currently evaluating the best time to do so. The Financial Accounting Standards Board (FASB) requires the new rules to take effect by January 1, 2025, but early adoption is permitted.
Updated (29 April 22:31 UTC): Added comment from CFO.
