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MicroStrategy reports a net loss of $53.1 million in the first quarter of 2024 and an annual revenue decline of 5%

The decline in revenue can be interpreted as a result of the changing market landscape or the need for business restructuring.

Date: 2024-04-30 Author: Marek Stiller
MicroStrategy reports a net loss of $53.1 million in the first quarter of 2024 and an annual revenue decline of 5%

Bitcoin (BTC) developer MicroStrategy on Monday reported a net loss for the first quarter of 2024 of $53.1 million, or $3.09 per share.

In its first-quarter earnings report, the software company said operating expenses included impairment charges on the company’s digital assets, which totaled $191.6 million in the first quarter of 2024, compared to $18.9 million in the first quarter of 2023. An impairment is an expense that reflects the fact that the value of an asset has fallen below its cost basis.

MicroStrategy reported revenues of $115.2 million, down 5% year-on-year. The company said operating expenses for the first quarter of 2024 totaled $288.9 million, an increase of 152.8% compared to the first quarter of 2023.

MicroStrategy’s bitcoin holdings in 2024

The vast majority of the company’s assets are held in Bitcoin. MicroStrategy’s total Bitcoin holdings currently stand at 214,400, with a total cost of $7.54 billion, or $35,180 per Bitcoin as of April 26, 2024. The company said that since the end of the fourth quarter, 25,250 Bitcoins have been purchased for $1.65 billion, or $65,232 per Bitcoin.

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We raised more than $1.5 billion in the first quarter, again executing our capital markets strategy, which includes two successful convertible bond offerings. Since the end of the fourth quarter, we have acquired 25,250 additional Bitcoins – this is the 14th consecutive quarter in which we have added more Bitcoins to our balance sheet,” said Andrew Kang, MicroStrategy’s chief financial officer, in a press release.

In its earnings report, MicroStrategy acknowledged that the approval of Bitcoin Exchange funds in the U.S. played a significant role in Bitcoin’s price appreciation, as well as increasing institutional demand and resulting in further regulatory clarity.

In March, MicroStrategy’s executive chairman and co-founder Michael Saylor said he saw no reason to sell any of his Bitcoin in the near future, adding that the approval of Bitcoin ETFs is an upward wave that will lift all boats.

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Marek Stiller
Marek Stiller
Founder of the "Cryptocurrency for Beginners" channel on YouTube. He collaborates with Łukasz to form the Arena Trading group, while at the same time being passionate about blockchain technology. His knowledge and experience in the cryptocurrency industry help beginner investors better understand this dynamic market.
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