MicroStrategy (NASDAQ:MSTR) shares retreated 7.2% in Monday after-hours trading after the software company delivered a bigger-than-forecast loss for Q1, driven by increased digital asset impairment losses.
Q1 Adjusted EPS of -$8.26, significantly trailing the -$0.13 average analyst estimate, dropped from $5.62 in Q4 2023 and $30.59 in the year-earlier quarter.
Revenue of $115.2M, also missing the $121.4M consensus, slid from $124.5M in the prior quarter and $121.9M a year before. Digital asset impairment losses totaled $191.6M in Q1, compared with $39.2M in Q4 2023 and $18.9M in Q1 2023.
As of March 31, 2024, the carrying value of MicroStrategy's (MSTR) digital assets comprised of about 214,278 bitcoins (BTC) stood at $5.07B, which reflects cumulative impairment losses of $2.461B since acquisition and an average carrying amount per bitcoin of approximately $23,680.
At the time, the original cost basis and market value of its bitcoin were $7.54B and $15.22B, respectively, which reflects an average cost per bitcoin of ~$35,164 and a market price per bitcoin of $71,028.14, respectively.
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