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.
” 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.
