From Yahoo Finance: 2025-04-08 11:31:00

Strategy, formerly MicroStrategy, reported a $5.91 billion loss on digital assets for Q1, offset by a $1.69 billion tax benefit. The company is affected by accounting standards for crypto assets, with bitcoin’s market value dropping back to pre-Trump levels. ASU 2023-08 will impact financial results and increase volatility.

Finance leaders are facing challenges closing Q1 books under new accounting standards for digital assets. Companies will need to report adjustments to retained earnings due to the decline in bitcoin value. The impact will vary depending on when assets were acquired, with most companies expected to report losses.

Before new accounting guidance, companies treated digital assets as intangibles, potentially underreporting their values. Michael Saylor of MicroStrategy welcomed fair value accounting standards for crypto assets. The new rules aim to facilitate the adoption of bitcoin as a treasury reserve asset by corporations worldwide.

Strategy, a software company turned bitcoin proxy, was the first public company to adopt bitcoin as a capital allocation strategy. Their Q1 holdings totaled 528,185 bitcoins, purchased at an average price of $67,458. Bitcoin’s value has fallen by 17.6% this year, trading around $76,945 late Tuesday.

Bitcoin’s market value has fallen this year, with Strategy reporting a $5.91 billion loss on digital assets for Q1. The company’s bitcoin holdings have increased to 528,185 bitcoins, purchased at an average price of $67,458. The adoption of accounting standards for crypto assets is expected to impact financial results and increase volatility.

Read more: Strategy reports unrealized $5.91B loss on digital assets