- Strategy reports $5.91B unrealized loss for Q1 2025 on BTC holdings.
- Bitcoin purchases paused after Q1 as BTC prices dipped below $84K.
- Strategy holds 528,185 BTC valued at $43B, nearly 3% of the total supply.
Strategy, formerly MicroStrategy, reported massive unrealized losses in Q1 of 2025. The firm revealed $5.91 billion in unrealized losses on its Bitcoin reserves because of the widespread decline in digital asset markets. On March 31, Strategy held 528,185 BTC, worth more than $43 billion.
Since 2020, Strategy has invested about $36 billion to acquire Bitcoin at an average price of $67,458. The firm holds a large amount of Bitcoin, which makes up 2.9% of the total Bitcoin supply. The company owns more than $43 billion in BTC, which positions the company as a major player in the digital assets sector.
The $5.91 billion unrealized loss in Q1 will affect the firm’s financial balance for the quarter. However, the company expects to minimize its financial impact through a $1.69 billion income tax benefit. The complex financial setup reveals the risks and advantages of large investments in Bitcoin.
Strategy Halts Bitcoin Purchases, Suspend Stock Sales
The company halted Bitcoin purchases on March 31st until April 4th because of the market drop. In Q1 , the company spent $7.66 billion to buy 80,715 BTC at an average price of $94,922. However, Bitcoin closed the first quarter below $84,000, which represents an 11.82% decline.
The company decided to stop Bitcoin acquisitions because it remains cautious about the market fluctuation. The recent global financial market has witnessed substantial pressure, which further affected the cryptocurrency market. The firm suspended their Bitcoin acquisitions from March 31 to April 6 because of the market volatility.
Strategy’s decision to stop Bitcoin purchases follows increased market turbulence. Bitcoin experienced major price fluctuations between April 2 and April 6 when it reached $87,000 before it declined below $80,000. These price fluctuations demonstrate wider market volatility caused by global events and shifts in governmental policy.
Although the company paused its acquisition, its CEO, Michael Saylor, continued to promote Bitcoin. Saylor has confidence in the long-term value of Bitcoin despite market fluctuations. He believes Bitcoin is a hedge against inflation and other financial risks.
Moreover, the company suspended the sales of shares for its Class A common stock. Strategy regularly utilizes this stock to fund Bitcoin acquisitions. The company has structured its financial approach to match its cautious response to the current market uncertainties.