{"id":847335,"date":"2025-05-10T23:12:20","date_gmt":"2025-05-11T04:12:20","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/05\/10\/bitcoin-downturn-in-q1-leads-to-6-billion-unrealized-loss-for-strategy\/"},"modified":"2025-05-10T23:12:20","modified_gmt":"2025-05-11T04:12:20","slug":"bitcoin-downturn-in-q1-leads-to-6-billion-unrealized-loss-for-strategy","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/05\/10\/bitcoin-downturn-in-q1-leads-to-6-billion-unrealized-loss-for-strategy\/","title":{"rendered":"Bitcoin downturn in Q1 leads to $6 billion unrealized loss for Strategy"},"content":{"rendered":"

Bitcoins <\/p>\n

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\"bitcoins Bitcoin downturn in Q1 leads to $6 billion unrealized loss for Strategy<\/span> Oluwapelumi Adejumo \u00b7<\/span> 1 month ago<\/span> <\/span> <\/span> <\/span><\/p>\n

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Strategy<\/a>, previously known as MicroStrategy, has revealed close to $6 billion in unrealized losses on its Bitcoin investment during the first quarter of 2025, according to an April 7 filing<\/a> with the US Securities and Exchange Commission (SEC).<\/p>\n

Between January and March 2025, the firm acquired 80,715 BTC for $7.66 billion, or an average cost of $94,922 per coin.<\/p>\n

\"bitcoins
Strategy\u2019s Q1 Bitcoin Purchases (Source: SEC Filing)<\/figcaption><\/figure>\n

However, due to a sharp 11.8% downturn in Bitcoin\u2019s price during the quarter, the worst since 2018, the assets lost significant value, resulting in a $5.91 billion paper loss.<\/p>\n

Despite the unrealized losses, the company expects a partial offset from a $1.69 billion income tax benefit.<\/p>\n

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<\/a> came from the issuance of 2030B Convertible Notes.<\/p>\n

\"bitcoins
Strategy\u2019s Bitcoin Purchases in Q1 (Source: Bitcoin Treasuries)<\/figcaption><\/figure>\n

The company also raised $593.7 million through Perpetual Strike Preferred Stock<\/a>, using public and at-the-market offerings. An additional $710 million was secured through the initial sale of Perpetual Strife Preferred Stock<\/a>.<\/p>\n

Strategy pulled in $7.69 billion during the quarter to support its Bitcoin buying spree.<\/p>\n

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.<\/p>\n

\"bitcoins
Strategy\u2019s Bitcoin Holdings (Source: SEC Filing)<\/figcaption><\/figure>\n
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Bitcoin downturn in Q1 leads to $6 billion unrealized loss for Strategy Oluwapelumi Adejumo \u00b7 1 month ago Strategy, previously known as MicroStrategy, has revealed 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<\/p>\n","protected":false},"author":1,"featured_media":847336,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4041,5007],"tags":[11476],"class_list":["post-847335","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bitcoin","category-downturn","tag-bitcoins"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/847335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=847335"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/847335\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/847336"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=847335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=847335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=847335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}