or the 14th consecutive quarter, MicroStrategy grew its Bitcoin holdings with a purchase of approximately 25,250 BTC for $1.65 billion from January through March 2024. This represented an average price of $65,232 per coin over the period.
With its latest acquisition, MicroStrategy's total Bitcoin holdings now exceed 214,400 BTC as of April 26th. Valued at the purchase cost, this amounts to around $7.54 billion of BTC on the company's balance sheet. The average price per coin across all purchases is $35,180.
Financial Results
While strengthening its crypto reserves, MicroStrategy's overall financial performance reflected challenges in the current economic climate. First-quarter revenue declined 5.5% year-over-year to $115.2 million, exacerbated by foreign exchange impacts.
Subscription services were a bright spot, growing 22% to $23 million in revenue. However, a $191.6 million impairment loss on the company's Bitcoin stash contributed to a reported net loss of $53.1 million compared to a $461.2 million profit in Q1 2023.
Operating expenses ballooned 152.8% to $288.9 million due to these digital asset impairments. MicroStrategy CFO Andrew Kang acknowledged Bitcoin's price volatility also played a role in the impairment. Gross profit fell to $85.2 million with margins down from 77.1% to 74%.
Outlook Remains Positive
Despite economic headwinds, MicroStrategy executives painted an optimistic picture regarding operations and the Bitcoin strategy. Two debt offerings raised $1.5 billion in fresh capital for further crypto buys.
The company's software platforms also continue integrating into cloud services. Recent approvals of U.S. Bitcoin Spot ETFs are also expected to drive institutional demand, according to Kang. MicroStrategy stock has significantly outperformed Bitcoin and stocks since August 2020.
Chairman Michael Saylor again promoted MSTR as an alternative for crypto exposure. With over 1% of the total Bitcoin supply in reserves, MicroStrategy is deeply committed to riding the wave of innovation in digital assets. Only time will tell if this strategy pays off as the macro backdrop remains uncertain.
While traditional business metrics show the strain of high inflation, MicroStrategy upheld its pioneering role with another major Bitcoin purchase. The company now holds a significant stake in representing the future of this emerging asset class.
