Bitcoin downturn in Q1 leads to $6 billion unrealized loss for Strategy

Strategy, previously known as MicroStrategy, has revealed close to $6 billion in unrealized losses on its Bitcoin investment during the first quarter of 2025, according to an April 7 filing with the US Securities and Exchange Commission (SEC).

Between January and March 2025, the firm acquired 80,715 BTC for $7.66 billion, or an average cost of $94,922 per coin.

Strategy’s Q1 Bitcoin Purchases (Source: SEC Filing)

However, due to a sharp 11.8% downturn in Bitcoin’s price during the quarter, the worst since 2018, the assets lost significant value, resulting in a $5.91 billion paper loss.

Despite the unrealized losses, the company expects a partial offset from a $1.69 billion income tax benefit.

To fund these purchases, Strategy relied on several capital-raising initiatives. The firm generated $4.37 billion from its at-the-market Class A common stock sale. Another $1.99 billion came from the issuance of 2030B Convertible Notes.

Strategy’s Bitcoin Purchases in Q1 (Source: Bitcoin Treasuries)

The company also raised $593.7 million through Perpetual Strike Preferred Stock, using public and at-the-market offerings. An additional $710 million was secured through the initial sale of Perpetual Strife Preferred Stock.

Strategy pulled in $7.69 billion during the quarter to support its Bitcoin buying spree.

As of March 31, the firm holds 528,185 BTC, which were acquired for roughly $36 billion, or an average acquisition price of $67,458 per coin. At current market prices, the value of its Bitcoin holdings exceeds $43 billion.

Strategy’s Bitcoin Holdings (Source: SEC Filing)

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