MicroStrategy, the leading corporate investor in Bitcoin (CRYPTO:BTC), faced a $53.1 million net loss in the first quarter of 2024 despite the cryptocurrency's 65% price rally.
The company, which continued its Bitcoin accumulation strategy by purchasing more in April, saw this loss as a result of a $191.6 million digital asset impairment charge — a tenfold increase from the previous year.
This loss contributed to a 5.5% decrease in revenue from the same period in 2023, with earnings falling to $115.2 million.
Currently, MicroStrategy has not adopted the new accounting standard that recognises digital asset fair value, which could have reflected the significant rise in Bitcoin’s market value during the quarter.