MicroStrategy Reports $12.4 Billion Q4 Loss Amid Bitcoin Price Decline | MSTR Stock Impact

Business intelligence firm MicroStrategy (NASDAQ: MSTR) disclosed a substantial fourth-quarter net loss of $12.4 billion, primarily attributed to a significant impairment charge on its massive Bitcoin holdings. The company, led by Bitcoin advocate Michael Saylor, recorded a digital asset impairment loss of $1.98 billion for Q4 2023, reflecting the downturn in the BTC market during the period. Despite the accounting loss, MicroStrategy continued its aggressive Bitcoin acquisition strategy, adding approximately 31,755 bitcoins during the quarter. The company's total Bitcoin treasury now exceeds 190,000 BTC, purchased at an average price of $31,224 per coin. The reported loss is a non-cash accounting charge under U.S. GAAP rules, which requires crypto assets to be recorded at cost and written down for market declines, but not written up for increases. MicroStrategy's stock (MSTR) often exhibits high volatility correlated with Bitcoin's price movements.