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Digital Assets | 3 Months Ended
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Mar. 31, 2024
Intangible Assets, Net (Excluding Goodwill) [Abstract] |
Digital Assets | (3) Digital Assets The Company accounts for its digital assets, which are comprised solely of bitcoin, as indefinite-lived intangible assets in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other. The Company’s digital assets are initially recorded at cost. Subsequently, they are measured at cost, net of any impairment losses incurred since acquisition. Impairment losses are recognized as “Digital asset impairment losses” in the Company’s Consolidated Statement of Operations in the period in which the impairment occurs. Gains (if any) are not recorded until realized upon sale, at which point they are presented net of any impairment losses in the Company’s Consolidated Statements of Operations. In determining the gain to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the specific bitcoins sold immediately prior to sale. The following table summarizes the Company’s digital asset holdings (in thousands, except number of bitcoins), as of:
|  | March 31, |  |  | December 31, |
|  | 2024 |  |  | 2023 |
Approximate number of bitcoins held |  |  | 214,278 |  |  |  | 189,150 |
Digital assets carrying value |  | $ | 5,074,152 |  |  | $ | 3,626,476 |
Cumulative digital asset impairment losses |  | $ | 2,460,646 |  |  | $ | 2,269,013 |
The carrying value on the Company’s Consolidated Balance Sheet at each period-end represents the lowest fair value (based on Level 1 inputs in the fair value hierarchy) of the bitcoins at any time since their acquisition. Therefore, these fair value measurements were made during the period from their acquisition through March 31, 2024 or December 31, 2023, respectively, and not as of March 31, 2024 or December 31, 2023, respectively. The following table summarizes the Company’s digital asset purchases and digital asset impairment losses (in thousands, except number of bitcoins) for the periods indicated. The Company did no t sell any of its bitcoins during the three months ended March 31, 2024 or 2023, respectively.
|  | Three Months Ended |
|  | March 31, |
|  | 2024 |  |  | 2023 |
Approximate number of bitcoins purchased |  |  | 25,128 |  |  |  | 7,500 |
Digital asset purchases |  | $ | 1,639,309 |  |  | $ | 179,275 |
Digital asset impairment losses |  | $ | 191,633 |  |  | $ | 18,911 |
From time to time, the Company may be extended short-term credits from its execution partners to purchase bitcoin in advance of using cash funds in the Company’s trading account. The trade credits are due and payable in cash within days after they are extended. In the first quarter of 2024, certain of the assets of MacroStrategy LLC (“MacroStrategy”), a wholly-owned subsidiary of the Company, including bitcoin, were subject to a first priority security interest and lien in order to secure the repayment of short-term trade credits taken in its name. While trade credits are outstanding, the Company may incur interest fees and be required to maintain minimum balances in its trading and collateral accounts with such execution partners. As of March 31, 2024, the Company had no outstanding trade credits payable. As of March 31, 2024 and December 31, 2023, respectively, approximately 38,557 and 16,081 of the bitcoins held by the Company, which had carrying values of approximately $1.606 billion and $263.9 million on the Company’s Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023, respectively, served as part of the collateral for the Company’s 6.125% Senior Secured Notes due 2028 (the “2028 Secured Notes”), as further described in Note 5, Long-term Debt, to the Consolidated Financial Statements.

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- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350-30/tableOfContent + Details
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