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MicroStrategy Acquired 122 BTC ($7.8M) in April, Q1 Financial Report Shows

MicroStrategy shunned the new accounting rule to declare a $53.1 million net loss for Q1.

MicroStrategy, an American software firm turned Bitcoin development company, announced Monday that it acquired 122 bitcoins, worth $7.8 million, in April 2024. According to its quarter-one financial report, this takes the company’s total bitcoin stash to 214,400 BTC ($13.5 billion).

The acquisition marks the 14th consecutive quarter that MicroStrategy is acquiring bitcoin, a strategy that has significantly impacted its financial performance. MicroStrategy also revealed it acquired 25,250 BTC ($1.65 billion) since the close of Q4 2023 at an average price of $65,232 per asset.

With its current stash, MicroStrategy remains by far the public company with the latest exposure to Bitcoin. The business intelligence firm now holds more than 1% of Bitcoin’s circulating supply, holding more of the asset than most US ETF products.

Good Q1 Outing for MicroStrategy

MicroStrategy’s quarter-one report reveals a robust financial performance. Total revenue reached $115.2 million, and subscription services revenue increased significantly by 22% year over year, closing at $23 million.

Remarkably, MicroStrategy’s shares MSTR have surged significantly since the start of the year, growing over 86.71% year-to-date. According to data from TradingView, MSTR increased by over 10% on Monday to trade at $1292.

MSTR outperformed major traditional stocks like gold, the S&P 500, and even bitcoin. The stock benefited immensely from bitcoin’s rally after the US Securities and Exchange Commission (SEC) approved the exchange-traded fund (ETF) in January.

“In the first quarter, we raised over $1.5 billion by executing again on our capital market strategy, including two successful convertible debt offerings,” Andrew Kang, MicroStrategy’s Chief Financial Officer, stated.

He added, “We believe that the combination of our operating structure, bitcoin strategy, and focus on technology innovation provides a unique opportunity for value creation for our shareholders.”

MicroStrategy Shuns New Accounting Rule

MicroStrategy strategically decided to ignore the new accounting rule, which would have allowed it to report a net gain from Bitcoin’s first-quarter rally. Instead, the company reported a net loss of $53.1 million, or £3.09 per share, for Q1 2024. This decision came after the Bitcoin Whale declared a digital asset impairment loss of $191.6 million.

The new accounting rule would have allowed MicroStrategy to post a sizable gain from Bitcoin’s first-quarter rally. Instead, the firm decided to value its bitcoin at $23,680, or $5.1 billion, as opposed to the $71,028 the asset had closed at by March.

Elendu Benedict

Elendu Benedict is a professional writer with sheer competence in crypto-related journalism. With a background in Engineering, Benedict specialises on news related to ETFs, market analysis, and macroeconomic policies that affects the crypto market.