Strategy, formerly known as MicroStrategy, has disclosed nearly $6 billion in unrealized losses on its Bitcoin investment in the first quarter of 2025, as per an April 7 filing with the US Securities and Exchange Commission (SEC). Acquiring 80,715 BTC for $7.66 billion between January and March 2025, the firm suffered a significant loss due to an 11.8% decrease in Bitcoin’s price during the quarter, resulting in a $5.91 billion paper loss. However, the company anticipates a partial offset from a $1.69 billion income tax benefit.
To finance these acquisitions, Strategy utilized various capital-raising strategies. Through the at-the-market Class A common stock sale, the firm obtained $4.37 billion, while an additional $1.99 billion was raised through the issuance of 2030B Convertible Notes. Another $593.7 million was secured through Perpetual Strike Preferred Stock offerings, along with $710 million from the initial sale of Perpetual Strife Preferred Stock. Throughout the quarter, Strategy amassed $7.69 billion to support its Bitcoin investment spree.
As of March 31, Strategy holds 528,185 BTC, obtained for around $36 billion with an average acquisition price of $67,458 per coin. With current market prices, the value of its Bitcoin holdings surpasses $43 billion. Despite the substantial unrealized losses, Strategy’s long-term faith in Bitcoin remains evident through the proven strategies it has adopted to fund and support its investment in the leading cryptocurrency.
The disclosure of the considerable unrealized losses on Strategy’s Bitcoin investment highlights the volatility and risks associated with cryptocurrency investments, particularly in the face of drastic price fluctuations. However, Strategy’s forward-looking approach, demonstrated by its utilization of various capital-raising methods, underscores its commitment to leveraging Bitcoin as a long-term asset capable of generating significant returns.
The firm’s strategic capital-raising initiatives not only enabled it to finance its Bitcoin purchases but also served as a testament to its confidence in the resilience and potential of cryptocurrency investments. By strategically diversifying its funding sources and maximizing opportunities in the market, Strategy has positioned itself as a leading player in the evolving landscape of digital assets, setting a precedent for other companies looking to capitalize on the growing prominence of cryptocurrencies.
In conclusion, Strategy’s disclosure of unrealized losses on its Bitcoin investment underscores the inherent risks and rewards of cryptocurrency investments. However, the firm’s strategic approach to raising capital and supporting its Bitcoin purchases reflects its long-term vision and commitment to harnessing the potential of digital assets. As the cryptocurrency market continues to evolve, Strategy’s proactive stance positions it as a key player in the sector, reaffirming its confidence in Bitcoin as a valuable asset with the potential for significant growth and returns in the future.
