MicroStrategy Bitcoin Impairment Charge Jumps to $170.1M in Q1 2025

American business intelligence company MicroStrategy (NASDAQ:MSTR) reported its Q1 financial results, revealing a significant increase in its Bitcoin impairment charge. MicroStrategy has revealed that it suffered a $170.1 million impairment loss on its Bitcoin investment in the first quarter of 2025. This represents a considerable jump from the previous quarter.

According to MicroStrategy’s latest earnings report, the company recorded a non-cash digital asset impairment charge of $170.1 million in the first quarter. MicroStrategy (MSTR) took a non-cash digital asset impairment charge of $170.1 million in the first quarter, up from $146.6 million in the fourth quarter, according to its filings.

The increased impairment reflects the fluctuations in Bitcoin's price during the period. While MicroStrategy continues to hold a substantial amount of Bitcoin, these accounting charges impact the company's reported earnings. Despite the $170.1 million non-cash digital asset impairment charge, MicroStrategy (NASDAQ:MSTR) Q1 earnings and revenue both topped consensus estimates and rose from the year before as the Michael Saylor-led company continues its aggressive Bitcoin acquisition strategy.

The impact on the company's overall financial performance can be seen in MicroStrategy (MSTR)'s reported net operating loss of $53.1 million, or $3.09 per share, in the first quarter after taking a digital asset impairment charge of $191.6 million (discrepancy likely due to other contributing factors not specifically related to the $170.1M impairment). Despite the impairment, the company remains committed to its Bitcoin strategy.