MicroStrategy's first-quarter earnings report revealed that the company purchased around 25,250 BTC for $1.65 billion, averaging at $65,232 per BTC during the initial three months of the year.

Following these latest acquisitions, MicroStrategy now possesses a total of 214,400 BTC, approximately 1% of the total Bitcoin supply. The company disclosed its total holdings at a cost of $7.54 billion, or $35,180 per bitcoin, as of April 26.

Despite a decline in revenue, MicroStrategy continued to augment its Bitcoin holdings, demonstrating a steadfast commitment to its strategic investment in the leading cryptocurrency.

The firm's first-quarter total revenue was $115.2 million, marking a 5.5% decrease from the previous year. When adjusted for constant currency, the decline was slightly steeper at 5.7%.

However, subscription services revenue saw an increase, rising 22% year-over-year to $23.0 million, indicating a growing adoption of MicroStrategy's cloud-native software solutions.

MicroStrategy reported a net loss of $53.1 million for the quarter, a significant contrast to the net income of $461.2 million reported in the same quarter last year, primarily due to a $191.6 million impairment loss on its Bitcoin holdings.

Operating expenses surged by 152.8% to $288.9 million, further exacerbated by these digital asset impairments. Gross profit for the quarter stood at $85.2 million, with a gross margin of 74.0%, down from 77.1% a year ago.

Despite these financial challenges, the company remains optimistic about its operational strategy and the integration of its software platforms into cloud services. Additionally, the recent approval of spot bitcoin exchange-traded products has bolstered this outlook, hinting at a potential rise in institutional demand for cryptocurrencies.

MicroStrategy CFO Andrew Kang highlighted that the company added Bitcoin to its balance sheet for the 14th consecutive quarter with its latest purchases. He attributed Bitcoin's significant price appreciation in the first quarter of 2024 to the approval of spot Bitcoin ETFs, increased institutional interest, and improved regulatory clarity.

Kang mentioned that MicroStrategy raised $1.5 billion through two convertible debt offerings in the first quarter, part of which was allocated to Bitcoin investments.

Executive chairman and co-founder Michael Saylor emphasized MicroStrategy's Bitcoin acquisition initiative as an investment opportunity, promoting MSTR stock as an alternative to spot Bitcoin ETFs and direct Bitcoin investment. Saylor backed his statements with long-term data, reporting a 937% price growth in MSTR since adopting its Bitcoin strategy on August 10, 2020, compared to Bitcoin's 435% growth and the S&P 500's 52% appreciation over the same period.