MicroStrategy Incorporated (MSTR) disclosed a net operating loss of $53.1 million, or $3.09 per share, for the first quarter, primarily driven by a significant digital asset impairment charge of $191.6 million. Despite the recent rally in bitcoin prices, the company opted not to adopt the new digital asset fair value accounting standard, which could have reflected a more substantial profit.

By continuing with the older accounting standard, MicroStrategy valued its bitcoin holdings at $23,680 per bitcoin at the quarter’s end, totaling $5.1 billion. This valuation stands in contrast to the higher market closing price of $71,028 per bitcoin in March, which would have placed the value at approximately $15.2 billion.

The company also reported a modest acquisition in April, adding 122 bitcoins to its holdings, which now total 214,400 bitcoins. Based on the current bitcoin price of about $63,000, these holdings are valued at roughly $13.5 billion.

Throughout 2024, MicroStrategy has purchased 25,250 bitcoins for $1.65 billion, averaging $65,232 per bitcoin. Post-earnings announcement, the company’s shares fell by 3.3% in after-hours trading.

During the earnings call, CFO Andrew Kang reiterated the company’s intention to switch to the new digital asset fair value accounting rule, stating that they are currently determining the most opportune moment for adoption. The Financial Accounting Standards Board (FASB) has set a mandatory implementation date of January 1, 2025, for this new standard, though companies are permitted to adopt it earlier if they choose.