MicroStrategy has yet to adopt the new accounting standard that would have taken the billions of dollars in paper gains from Bitcoin’s 65% price rally into account.
MicroStrategy, the largest corporate holder of Bitcoin (BTC), reported a net loss of $53.1 million in the first quarter of 2024, while the firm continued to stack more Bitcoin in April.
The net loss came as the firm recorded a $191.6 million digital asset impairment loss in the quarter, up 10 times from the prior year period. Revenue also fell 5.5% compared to the first quarter of 2023, reaching $115.2 million, according to MicroStrategy’s Q1 results filing.
The firm is, however, yet to adopt the new digital asset fair value accounting standard — which would have taken into account the 65% increase in fair value (or market value) of Bitcoin during the quarter.
