Strategy (NASDAQ: MSTR ), formerly known as MicroStrategy, has reported unrealized losses on its cryptocurrency haul for the first three months of 2025, coinciding with the company’s continued spree of accumulating Bitcoin. In a Monday, April 7 filing with the Securities and Exchange Commission (SEC), the firm disclosed $5.91 billion in unrealized digital asset losses, primarily tied to its massive Bitcoin treasury. The Michael Saylor-led firm stated that the losses are partially offset by $1.69 billion in income-tax benefits. “Our unrealized loss on digital assets for the quarter ended March 31, 2025, was $5.91 billion, which we expect will result in a net loss for the quarter ended March 31, 2025, partially offset by a related income tax benefit of $1.69 billion,” the company stated. Bitcoin’s challenging period The announcement comes during a challenging stretch for Bitcoin ( BTC ), which has dropped below the $80,000 support level. BTC was trading at $79,295 at press time, down over 4% in the past 24 hours. BTC seven-day price chart. Source: Finbold As of March 31, 2025, Strategy held 528,185 Bitcoins, acquired at an average price of $67,458 per coin, amounting to $35.63 billion in total purchase costs. Based on Bitcoin’s market price at the time of reporting, the company’s BTC holdings were valued at approximately $41.87 billion. An excerpt from Strategy’s Form 8-K report. Source: SEC Despite the unrealized losses, Strategy pressed on with its Bitcoin buying spree in Q1, acquiring 22,048 Bitcoins between March 24 and March 30 for $1.92 billion at an average price of $86,969 per coin. However, no additional purchases were made during the week of March 31 to April 6. The company raised $7.69 billion to finance its crypto acquisitions through various share offerings during the quarter. Still, Strategy warned that its enterprise analytics software business has not generated positive cash flow recently and may struggle to meet financial obligations, including $8.22 billion in outstanding debt and $146.2 million in annual dividends on preferred stock. Additionally, Strategy faces tax liabilities of approximately $2.28 billion related to unrealized gains on its Bitcoin holdings, though deferred tax assets like net operating losses partially offset these. A continued decline in Bitcoin’s value could force the company to increase valuation allowances, further impacting its financial stability. MSTR stock price analysis Unsurprisingly, the unrealized losses have weighed on MSTR stock. As of press time, shares were trading at $279, down nearly 5% on the day. Year-to-date, Strategy stock has dropped about 7%. MSTR YTD stock price chart. Source: Finbold It’s worth noting that the stock has also been impacted by the broader market sell-off amid uncertainty surrounding President Donald Trump’s sweeping tariffs. Featured image via Shutterstock The post Here’s how much Michael Saylor’s Strategy lost on crypto in Q1 2025 appeared first on Finbold .
