MicroStrategy, the leading corporate holder of Bitcoin (BTC), faced a net loss of $53.1 million in the first quarter of 2024. Despite this financial setback, the company continued to acquire more Bitcoin in April.

The net loss stemmed from a significant $191.6 million digital asset impairment loss during the quarter, marking a tenfold increase from the previous year. Additionally, revenue dropped by 5.5% compared to the first quarter of 2023, totaling $115.2 million, as per MicroStrategy's Q1 results filing.

MicroStrategy has not yet implemented the new digital asset fair value accounting standard, which would have reflected the 65% rise in Bitcoin's fair value throughout the quarter. Consequently, the company's Bitcoin carrying value was reported at $5.07 million based on traditional accounting methods, rather than $15.2 billion using the fair value approach.

Despite advocating for the adoption of the new standard in a letter to the Financial Accounting Standards Board (FASB) in May 2023, FASB only recently modified its rules to require fair value reporting for digital assets starting after December 15, 2024.

In April, MicroStrategy purchased an additional 122 Bitcoin for $7.8 million, raising its total Bitcoin holdings to 214,400, valued at $13.5 billion, with an average purchase price of $35,180. The company secured $1.5 billion through convertible note debt offerings in the first quarter to acquire another 25,250 Bitcoin, maintaining its streak of adding Bitcoin to its balance sheet for the 14th consecutive quarter.

After the announcement, MicroStrategy's stock (MSTR) declined by 3.3% in after-hours trading. While Bitcoin's surge led to a substantial rise in MicroStrategy's stock in the first quarter, reaching $1704 by the end of March, the stock has since fallen to $1,292. Investment firm Kerrisdale Capital expressed reservations about the relevance of MicroStrategy shares as an indicator of Bitcoin investment, highlighting concerns of overvaluation and even taking short positions on the stock.