MicroStrategy, renowned as the largest corporate holder of Bitcoin (BTC), has reported a net loss of $53.1 million in the first quarter of 2024. Despite this, the firm continued its strategy of accumulating more Bitcoin throughout April.

The net loss was primarily driven by a $191.6 million digital asset impairment loss recorded in the quarter, which marks a tenfold increase from the prior year period. Additionally, the firm's revenue fell by 5.5% compared to the first quarter of 2023, amounting to $115.2 million, according to MicroStrategy's Q1 results filing.

Interestingly, MicroStrategy has yet to adopt the new digital asset fair value accounting standard, which would have taken into account the 65% increase in the fair value (or market value) of Bitcoin during the quarter. Consequently, MicroStrategy's carrying value of Bitcoin was marked at $5.07 million at $23,680 per Bitcoin per the traditional accounting method, instead of $15.2 billion if it had adopted the fair value approach.

This decision is notable, as MicroStrategy had previously expressed support for the new standard in a letter to the Financial Accounting Standards Board (FASB) in May 2023. Approximately seven months later, FASB amended its rules to mandate fair value reporting of digital assets for fiscal years after December 15, 2024.

Despite the financial results, MicroStrategy continued to add to its Bitcoin holdings, purchasing another 122 Bitcoin for $7.8 million in April, as revealed in the financial statement. The firm now holds 214,400 Bitcoin, valued at $13.5 billion, with an average purchase price of $35,180.

In the first quarter, MicroStrategy raised $1.5 billion from two convertible note debt offerings to acquire an additional 25,250 Bitcoin. This marked the firm's 14th consecutive quarter of adding more Bitcoin to its balance sheet, as noted by Phong Le, MicroStrategy's president and CEO.

Following the announcement, MicroStrategy (MSTR) stock fell by 3.3% in after-hours trading, according to Google Finance. The significant increase in Bitcoin's value led to a remarkable rally for MicroStrategy in the first quarter, with the stock surging over 170% to $1704 by the end of March. However, the stock has since fallen to $1,292, according to Google Finance.