MicroStrategy, the Bitcoin (BTC) development company, announced a net loss of $53.1 million in the first quarter of 2024, equal to $3.09 per share on Monday. This update comes from the firm’s first-quarter earnings report, which highlighted various financial aspects of the company.
Financial Insights
Operating expenses for MicroStrategy included impairment losses on digital assets, amounting to $191.6 million in the first quarter of 2024, a significant increase from the $18.9 million reported in the same period in 2023. Impairment losses signify a decrease in the value of an asset below its cost basis. Despite this, the company reported revenue of $115.2 million, down 5% year-over-year. Operating expenses for the first quarter of 2024 surged to $288.9 million, marking a notable 152.8% rise compared to the first quarter of 2023.
The majority of MicroStrategy’s assets is held in Bitcoin, with the firm’s total Bitcoin holdings reaching 214,400 at a total cost of $7.54 billion, translating to $35,180 per Bitcoin, as of April 26, 2024. The company revealed that it acquired 25,250 Bitcoins post the fourth quarter for $1.65 billion, at $65,232 per Bitcoin.
Quotes and Insights
“In the first quarter, we raised over $1.5 billion by executing again on our capital markets strategy including two successful convertible debt offerings. We acquired 25,250 additional Bitcoins since the end of the fourth quarter, our 14th consecutive quarter of adding more Bitcoin to our balance sheet,” said Andrew Kang, Chief Financial Officer, MicroStrategy.
Reacting to the price appreciation of Bitcoin, MicroStrategy noted the impact of the approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S. This approval played a significant role in the rise of Bitcoin’s price, increased institutional demand, and led to improved regulatory clarity within the sector. In March, Michael Saylor, the executive chairman, and co-founder of MicroStrategy, expressed his long-term commitment to Bitcoin by stating that he had no intentions of selling any of his Bitcoins anytime soon. Saylor emphasized that the approval of spot Bitcoin ETFs is a positive development for the market, likening it to a rising tide that benefits all participants.
