Back to News

MicroStrategy Buys Additional 122 Bitcoins, Records Q1 Operational Loss of $53.1M

Twitter icon  •  Published há 2 semanas  •  Hassan Maishera

MicroStrategy continues its Bitcoin buying spree after acquiring 122 BTC in April despite recording a $53.1 million operations loss in Q1.

TL;DR

  • MicroStrategy has continued its Bitcoin buying spree despite recording an operational loss in the first quarter of the year.

  • The company now holds 214,000 bitcoins.

MicroStrategy Buys More Bitcoins

MicroStrategy, the largest corporate holder of Bitcoin (BTC), has continued its Bitcoin buying spree. According to its Chairman, Michael Saylor, the Bitcoin development company purchased 122 BTC for $7.8 million and now holds 214,400 BTC.

The company’s Bitcoin holdings are worth $13.5 billion, bought at an average purchase price of $35,180. MicroStrategy raised $1.5 billion from two convertible note debt offerings to acquire another 25,250 Bitcoin in the first quarter of the year. 

According to the company’s president and CEO Phong Le, last quarter was MicroStrategy’s 4th consecutive quarter of adding more Bitcoin to its balance sheet.

The acquisition came despite the company reporting an operational loss of roughly $53 million in the year's first quarter. 

According to the firm, the net loss came after it recorded a $191.6 million digital asset impairment loss, 10 times the figures reported in the same quarter last year. Furthermore, MicroStrategy’s revenue dipped by 5.5% compared to the first quarter of 2023, reaching $115.2 million.

Despite the operational losses, MicroStrategy is yet to adopt the new digital asset fair value accounting standard. The new standard would have taken into account the 65% increase in BTC’s fair value in Q1. 

For this reason, the firm’s BTC carrying value stood at $5.07 million at $23,680 per Bitcoin, using the traditional accounting method, instead of $15.2 billion if it had adopted the fair value approach.

BTC is having a poor start to the second quarter of the year, down by more than 9% in April. At press time, BTC is trading at $63,620 per coin but could rally higher in the coming weeks and months.

 

Next article Phemex Pulse Announces Major Updates: Introducing Community Moderators and Collaborative Filtering Cast

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.