Strategy Opted Not to Acquire Bitcoin Last Week, Forecasts $6B Loss on Holdings in Q1

Key Points:

• Strategy did not purchase any Bitcoin between March 31 and April 6, keeping its total holdings at 528,185 BTC.

• The company anticipates a nearly $6 billion loss on its Bitcoin holdings for the first quarter.

• The average purchase price of Strategy's Bitcoin holdings has increased to around $67,500, compared to the current price of $77,000.

Amid market volatility and likely putting its capital raising efforts on hold, Strategy (MSTR) did not increase its Bitcoin (BTC) holdings last week.

The company also anticipates reporting a net loss for the first quarter, primarily due to a $5.91 billion unrealized loss on its Bitcoin holdings, according to a filing on Monday morning. This comes after the implementation of new accounting regulations that require crypto assets to be valued at market price. However, a $1.69 billion tax benefit is expected to partially mitigate the loss.

Strategy raised $7.69 billion in total during the quarter, with $4.4 billion sourced from common stock sales and the rest from issuing preferred stock. The majority, if not all, of these funds were used to buy Bitcoin at much higher prices than the current $77,000.

The average cost per Bitcoin for the company’s 528,185 BTC holdings has risen to nearly $67,500, meaning the company has seen a gain of only about 14% on its Bitcoin assets.

MSTR shares are down 9% in early Monday trading, marking a 10% decline year-to-date, though they are still up 77% compared to the same time last year.