After Pausing Bitcoin Buys, Strategy Expects $6B Hit to Q1 Holdings

After a quarter of aggressive Bitcoin accumulation, Strategy (MSTR) took a step back last week, opting not to add to its crypto holdings as market conditions worsened.

In a Monday morning filing, the company said it anticipates a first-quarter net loss due to a $5.91 billion unrealized loss on its Bitcoin position. The accounting shift comes as a result of new rules requiring companies to mark crypto assets to market prices, even if they remain unsold. A $1.69 billion tax benefit is expected to reduce the net impact.

Strategy raised $7.69 billion during Q1—$4.4 billion from common stock sales and the rest from preferred equity. Much of this capital was used to purchase Bitcoin, often at prices higher than today’s $77,000 per coin.

As of now, Strategy holds 528,185 BTC at an average purchase price of roughly $67,500. That leaves the company with a roughly 14% unrealized gain on its total Bitcoin stash—down from significantly higher paper profits earlier in the year.

Shares of MSTR dropped 9% in early Monday trading, bringing year-to-date losses to 10%. Still, the stock is up 77% over the past year, reflecting continued investor belief in Bitcoin’s long-term potential, even amid short-term turbulence.

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