**MicroStrategy Reports $4.2 Billion Q1 Loss Linked to Bitcoin Price Drop**
MicroStrategy Inc. disclosed a **$4.2 billion net loss** for the first quarter of 2024, driven by a **$5.9 billion impairment charge** tied to declining Bitcoin prices. The loss equated to **$16.49 per share**, underscoring the volatility of its substantial cryptocurrency investments.
In response, the company announced a **$21 billion public stock offering** to bolster its Bitcoin acquisition strategy. Additionally, MicroStrategy raised its Bitcoin yield target from **15% to 25%** and increased its dollar-denominated yield goal from **$10 billion to $15 billion**, signaling aggressive plans to leverage its crypto holdings for higher returns.
As of April 2024, MicroStrategy holds **553,555 Bitcoins**, acquired at an average cost of **$68,459 per coin** for a total of **$37.9 billion**. Despite the impairment—a non-cash accounting adjustment required when Bitcoin’s market price falls below its carrying value—the firm reaffirmed its commitment to expanding its BTC reserves.
Michael Saylor, Executive Chairman, stated: *“Our strategy focuses on growing Bitcoin holdings while maximizing shareholder value. We remain confident in Bitcoin’s long-term potential as a transformative asset class.”*