Strategy Reveals $6 Billion in Unrealized Losses on Bitcoin Investment

Company Acquires 80,715 BTC for $7.66 Billion in Q1 2025

Strategy, previously known as MicroStrategy, has reported 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.

Unrealized Losses Due to 11.8% Downturn in Bitcoin’s Price

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.

Funding for Bitcoin Purchases

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.

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.

Current Holdings and Market Value

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.

Conclusion

Strategy’s Q1 2025 filing reveals a significant unrealized loss on its Bitcoin investment, largely due to a downturn in the cryptocurrency’s price. Despite this, the company expects a partial offset from an income tax benefit and has a significant amount of capital invested in its Bitcoin holdings, which have appreciated in value.