MicroStrategy (MSTR) Reports Losses in Q1 After Digital Asset Impairment Hit

Financial giant MicroStrategy (MSTR) on Monday reported disappointing first-quarter 2024 results. A digital impairment loss made the company miss market estimates and swing to losses in the first quarter of the year. MicroStrategy’s results gave a larger idea about the crypto sphere and what firms in the sector might be going through.

MicroStrategy Sees A Revenue Drop

In comparison to the first quarter of 2023, MicroStrategy’s total revenues for the first quarter of 2024 were $115.2 million, a 5.5% decline, or a 5.7% decrease on a non-GAAP constant currency basis. Revenues from product licenses and subscription services came in at $35.9 million in the first quarter of 2024, down 0.9% from the same period in 2023 (or 0.9% on a non-GAAP constant currency basis).

Additionally, compared to the first quarter of 2023, operating expenses increased by 152.8% to $288.9 million in the first quarter of 2024.

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MicroStrategy Swings to Losses

The first quarter of 2024 saw MicroStrategy get hit with a $203.7 million loss from operations, as opposed to $20.3 million for the same period in 2023. First-quarter 2024 net loss was $53.1 million, or $3.09 per share on a diluted basis, compared to first-quarter 2023 net income of $461.2 million, or $31.79 per share on a diluted basis.

These figures represented the first quarters of 2024 and 2023’s $191.6 million and $18.9 million, respectively, losses from digital asset impairment. Also, Net (loss) income was primarily affected by income tax impacts from share-based compensation, with a benefit from income taxes of $160.8 million and $453.2 million for the first quarters of 2024 and 2023, respectively.

MicroStrategy Reveals BTC Holdings

Michael Saylor of MicroStrategy revealed that the company now has 214,400 BTC in Bitcoin as a result of the most recent acquisition. According to the statement that was made public, the whole amount of Bitcoin was purchased for $35,180 on average per unit. The purchase of Bitcoin by MicroStrategy was disclosed by Coingape in March. The company reportedly bought 9,245 BTC, increasing its total Bitcoin holdings to 214,246 BTC at the time. Later on, it was raised to 214, 278 BTC. With its current total position of 214,400 BTC, the company only bought 122 units of Bitcoin in April.

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