MicroStrategy Buys 122 Bitcoins Despite Reporting a $53.1 Million Net Loss in the First Quarter

Recently, the self-described Bitcoin development company MicroStrategy (MSTR) bought an extra 122 BTC for $7.8 million. It recently emerged in a X post that shared the news with the Founder, Michael Saylor, confirming that MicroStrategy now has an additional 214,400 Bitcoins.

MicroStrategy has released financial reports for the first quarter of 2024 on April 29, 2024. It is stated that the company's holdings of 214,400 Bitcoins are amounting to $7.54 billion, or $35,180 per Bitcoin. Since the last quarter of 2023, MicroStrategy has continued its shopping activities and made purchases totaling 25,250 Bitcoins at $1.65 billion, or $65,232 per Bitcoin.

Phong Le, President and Chief Executive Officer, MicroStrategy, argued that the company is dedicated to the progress of Bitcoin through its "activities in the financial markets, advocacy, and technology innovation." He added,

"It is through our unique bitcoin strategy and solid track record as an operating company that we now hold 214,400 bitcoins at an average purchase price of $35,180 per bitcoin.".

The report states that in Q1, MicroStrategy reported gross profit at $85.2 million with a gross margin of 74.0%. In 2023 Q1, it made a gross profit of $94.0 million, which represents a 77.1% gross margin.

Furthermore, the report delved into the company's revenues, pointing out that Q1 total revenues of $115.2 million represented a decrease of 5.5% from last year's Q1. Revenues from product licenses and subscription services decreased by 0.9% to $35.9 million for the quarter. Product support revenues decreased by 4.3% to $62.7 million for the quarter.

It is also important to mention that MicroStrategy shared insights into losses on a quarterly basis that the platform encountered in 2024 Q1. The company reported a net loss for the first quarter of $53.1 million or $3.09 per share on a diluted basis. The operating loss from the company in 2024 Q1 was summed up to reach as high as $203.7 million, while in 2023 Q1, the loss was at $20.3 million.