U.Today - MicroStrategy, under the stewardship of CEO Michael Saylor, disclosed its financial results for Q1, 2024, revealing a mixed bag of outcomes in its Bitcoin endeavors. Despite a 5% dip in total revenues year-over-year to $115.2 million, the company maintains its status as the foremost corporate holder of Bitcoin.
With a total of 214,400 BTC acquired at an average price of $35,180 per coin, MicroStrategy has committed approximately $7.54 billion to its Bitcoin holdings as of April 26, 2024.
During the quarter, MicroStrategy bolstered its Bitcoin reserves by acquiring an additional 25,250 BTC since the close of Q4, 2023, splurging $1.65 billion at an average price of $65,232. MicroStrategy also saw a notable uptick in its subscription services revenue, which reached $23 million, marking a robust 22% year-over-year increase. This growth underscores the transition of the company's software business to a cloud-native platform.
However, MicroStrategy faced significant headwinds during the quarter, particularly evident in its financial figures. The company recorded a net loss of $53.1 million, attributed in part to a substantial $191.6 million in impairment losses on its digital assets. Operating expenses surged by a staggering 152.8%, primarily due to these impairment losses.
Despite these challenges, MicroStrategy's president and CEO remains optimistic about the company's trajectory. He emphasized the sustained growth in subscription service revenues and subscription billings.
Meanwhile, the chief financial officer reiterated the strategic importance of MicroStrategy's Bitcoin acquisitions, highlighting a consistent increase in crypto holdings for the 14th consecutive quarter.
This article was originally published on U.Today