MicroStrategy Q1 Operating Loss of $53.1M After Bitcoin Holdings Impairment Charge of $191.6M
Summary
MicroStrategy reported a net operating loss of $53.1 million in Q1 due to a digital asset impairment charge of $191.6 million. Despite expectations that the company might adopt the new fair value accounting standard and report a profit due to bitcoin's Q1 rally, it chose not to. Instead, it valued its bitcoin holdings at $23,680 each, rather than the March closing price of $71,028. The company added 122 tokens to its bitcoin holdings in April, bringing the total to 214,400, valued at $13.5 billion at the current bitcoin price of about $63,000. MicroStrategy's shares dropped by 3.3% in after-hours trading.
