MicroStrategy Q1 reported a net loss of US$53.1 million! In April, the intensity of adding positions dropped sharply, and only 144 BTC were purchased.

This site (120BTc.coM): MicroStrategy, the dominant Bitcoin holding among US listed companies, can be said to be one of the big winners in the Bitcoin bull market. Its stock price so far this year It has exceeded 88.7%.

However, in the first quarter 2024 financial report released today (30th), the company reported a net loss of US$53.1 million, including US$191.6 million in Bitcoin "digital asset impairment charges." Q1 revenue also fell 5.5% from the same period last year to $115.2 million.

The Q1 financial report did not include billions of dollars in Bitcoin gains

However, it is worth noting that MicroStrategy did not adopt the new version of crypto-asset accounting standards in the Q1 financial report, so it did not The billions of dollars in book gains brought about by Bitcoin's surge of more than 65% in the first quarter are included in the net profit.

The company stated that at the end of the Q1 quarter, it still adopted the old version of accounting standards, and the overall valuation of its Bitcoin holdings was US$5.074 billion, with a book value of US$23,680 per Bitcoin, which reflected self-purchases. Impairment losses of US$2.461 billion since acquisition. However, if calculated based on Bitcoin’s closing price of $71,028 in March, the overall market value of Bitcoin is as high as $15.2 billion.

In December last year, the U.S. Financial Accounting Standards Board (FASB) officially updated its accounting standards for crypto-assets, allowing companies to use "fair value" to account for certain cryptocurrencies held on their balance sheets. , and incorporate changes in fair value into net profit, instead of being able to use the original purchase price for accounting and only recording accumulated "impairment" expenses as before. Michael Saylor, co-founder of MicroStrategy, praised the move at the time as it would promote global Businesses use Bitcoin as a reserve asset.

MicroStrategy’s chief financial officer said on the earnings call that the company fully plans to adopt new digital asset fair value accounting rules and is currently evaluating the best time to do so. This new FASB cryptocurrency accounting standard will officially take effect on December 15 this year, but companies are allowed to adopt it early.

MicroStrategy added another 122 Bitcoins, bringing the total holdings to 214,400

On the occasion of the release of the Q1 financial report, Michael Saylor also announced today that he had added an additional US$7.8 million in April. , purchased 122 BTC, bringing its total Bitcoin holdings to 214,400. Based on the current value of Bitcoin of US$63,628, the total value reached US$13.6 billion, and its average purchase price per Bitcoin was US$35,180, which means The floating profit of its Bitcoin holdings reached US$6.1 billion.

Although we are still buying, the buying power in April has shrunk a lot compared to the previous months. MicroStrategy President and CEO Phong Le commented in the financial report: "In Q1 this year, we raised more than US$1.5 billion by once again executing capital market strategies, including two successful convertible bond issuances. Since Q4 last year, we have spent a total of US$1.65 billion. USD purchased an additional 25,250 Bitcoins, marking the 14th consecutive quarter that we have added more Bitcoins to our balance sheet."

After the earnings announcement, MicroStrategy stock price MSTR was trading after the market closed today. It fell 2.47% to US$1,261 and closed at US$1,292.97 yesterday. It has fallen more than 32% from the year's high of US$1,919.16 in late March.

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