Strategy Reports $6 Billion Loss on Bitcoin Holdings in Q1 2025

Strategy, a prominent business intelligence firm and corporate Bitcoin holder, has disclosed a substantial loss of nearly $6 billion on its Bitcoin holdings in the first quarter of 2025. This loss is attributed to the global market downturn, which has significantly impacted the value of digital assets. The company, which is listed on the Nasdaq, did not acquire any Bitcoin over the last week due to the price slump.

During the first quarter, Strategy purchased 80,715 BTC for $7.66 billion using proceeds from its at-the-market equity offering. The company bought BTC at an average price of $95,000, but the price of Bitcoin closed below $84,000 and dipped by 12%, marking its worst quarterly performance since 2018. This price performance extended Strategy’s unbooked losses from the previous quarter.

According to an April 7 filing, the company expects to report a net loss for the first quarter due to a $5.91 billion unrealized loss on its Bitcoin stash. Notably, Strategy did not acquire any new BTC between March 31 and April 4, as it did not sell any class A common stock or its perpetual strike preferred offering within that period.

The Bitcoin holding company holds over 528,000 BTC as of press time. Since it started buying Bitcoin in August 2020, Strategy has spent around $36 billion adding the largest crypto to its treasury at an average price of $67,458. Its Bitcoin stockpile, worth approximately $43 billion, represents nearly 3% of Bitcoin’s total supply of 21 million.

While Strategy halted Bitcoin buys last week, its co-founder and Executive Chairman, Michael Saylor, continued to highlight the crypto’s superiority. “Bitcoin is most volatile because it is most useful,” Saylor postulated on April 3, shortly after BTC nosedived from the intra-week high of $87,100 on April 2 to sub-$82,000, following the tariffs announcement. “Today’s market reaction to tariffs is a reminder: inflation is just the tip of the iceberg,” Saylor noted in another post. “Capital faces dilution from taxes, regulation, competition, obsolescence, and unforeseen events. Bitcoin offers resilience in a world full of hidden risks,” he continued.

Bitcoin is currently trading for $77,748, showing a 5.3% fall over the last day. The crypto asset dropped below the psychological $80,000 level on April 6, a huge discount from the average BTC price of Strategy’s previous 22,048 BTC purchase for $1.9 billion announced on March 31.

Strategy's aggressive Bitcoin accumulation strategy has faced significant challenges due to the market downturn. The company's decision to hold Bitcoin, despite the market volatility, reflects its long-term belief in the cryptocurrency's potential. However, the recent losses have highlighted the risks associated with such a strategy. The company's financial performance will be closely watched in the coming quarters as it navigates the challenges posed by the market downturn.