Strategy Reports $5.91 Billion Unrealized Bitcoin Loss in Q1 2025

TLDR

Strategy (formerly MicroStrategy) paused Bitcoin purchases as BTC fell below $87,000
The company reported $5.91 billion in unrealized losses on its Bitcoin holdings in Q1 2025
Strategy holds 528,185 Bitcoin bought at an average price of $67,458 per BTC
The company’s Bitcoin portfolio is only 13% away from losing all gains according to Akrham
Strategy shares fell 10.6% to $262 on Monday as Bitcoin dropped to a five-month low

Strategy, the Virginia-based company formerly known as MicroStrategy and the world’s largest corporate holder of Bitcoin, has paused its Bitcoin purchases as the cryptocurrency’s price dropped below $87,000. According to a filing with the US Securities and Exchange Commission on April 7, the company made no Bitcoin purchases during the week of March 31 to April 6, 2025.

This pause follows a period of market volatility, with Bitcoin reaching as high as $87,000 on April 2 before falling below $80,000 on April 6. The drop represents a major discount from the average price of Strategy’s previous purchase of 22,000 BTC announced on March 31.

The company reported an unrealized loss of $5.91 billion on its digital assets for the quarter ended March 31, 2025. Strategy expects this will result in a net loss for the quarter, partially offset by a related income tax benefit of $1.69 billion.

As of April 7, Strategy held 528,185 Bitcoin purchased for $35.6 billion, at an average price of $67,458 per BTC. At current prices around $77,351, the company still maintains an unrealized profit of approximately 14.62%, or roughly $5 billion.

Close to Losing All Gains

According to cryptocurrency analytics firm Akrham, Strategy is only 13% away from losing virtually all of its Bitcoin gains. The company’s average purchasing price stands at $67,458 after its most recent $2 billion purchase announced on March 31.

Strategy spent $7.7 billion in Q1 on Bitcoin at an average price of $95,000 per coin. The company paused additional purchases in April following the sharp drop in Bitcoin prices.

The cryptocurrency has dropped to around $78,200, marking a five-month low. This decline follows renewed market unease over former President Donald Trump’s proposed tariffs, which have weighed on risk assets.

Market Impact

The broader market has also felt the impact, with the Nasdaq down roughly 10% month-to-date, while the S&P 500 has shed over 7%. Strategy shares fell 10.6% to $262 on Monday as Bitcoin prices continued to decline.

The company did not sell any shares of class A common stock during the period from March 31 to April 6, which it typically uses for financing its Bitcoin purchases.

Strategy acknowledged that future profitability remains uncertain due to volatility in digital asset values. The company’s software segment continues to operate without positive cash flow, forcing reliance on debt and equity offerings.

Saylor Remains Bullish

Despite the pause in Bitcoin purchases, Michael Saylor, the company’s co-founder and former CEO, has continued to express optimism about Bitcoin on social media.

“Bitcoin is most volatile because it is most useful,” Saylor wrote in an X post on April 3, shortly after BTC tumbled from its intra-week high of $87,100.

Bitcoin is most volatile because it is most useful. https://t.co/XzCNHrdsh0

— Michael Saylor (@saylor) April 4, 2025

In another post, Saylor stated, “Today’s market reaction to tariffs is a reminder: inflation is just the tip of the iceberg. Capital faces dilution from taxes, regulation, competition, obsolescence, and unforeseen events. Bitcoin offers resilience in a world full of hidden risks.”

Saylor has repeatedly ruled out selling even a small portion of the company’s Bitcoin holdings. His continued bullish stance comes despite the company’s current financial position and the volatility in Bitcoin’s price.