Strategy, formerly MicroStrategy, is feeling the pinch. A lot of it. The firm disclosed a staggering $5.91 billion in unrealized losses on its Bitcoin holdings for the first quarter of 2025. That’s a hefty sum, even for a company that’s bet big on crypto. It seems those macro-driven policies aren’t playing nice with digital assets.
- MicroStrategy (now Strategy) reported massive unrealized losses on its Bitcoin holdings in Q1 2025, indicating the company’s heavy reliance on crypto is proving risky. Macroeconomic factors are negatively impacting their digital asset investments.
- The company’s Bitcoin buying spree has stalled due to lack of investor interest in their stock offerings, highlighting the need for market demand to support their crypto accumulation strategy. They were unable to add any Bitcoin between March 31st and April 4th.
- Despite acquiring a significant amount of Bitcoin during the quarter, a market downturn resulted in substantial losses, demonstrating the volatility and potential risks associated with large-scale crypto investments. Their average purchase price was significantly higher than the quarter’s closing price.
And the buying spree? It’s officially stalled. Strategy didn’t add a single Bitcoin to its treasury between March 31st and April 4th. Why? No one was buying *their* stock. Zero patronage for their Class A common stock, MSTR, and their perpetual strike preferred offering. It’s a bit like trying to sell ice to Eskimos, really. You need someone to want what you’re offering first
During the quarter, they did manage to snag 80,715 BTC for $7.66 billion, thanks to an at-the-market equity offering. Not bad, except Bitcoin decided to take a tumble. The average purchase price was $94,922, but the price closed below $84,000, dropping 11.82% – the worst quarterly performance since 2018. Ouch. That’s a quick way to turn a profit into a loss. It’s a reminder that even the best-laid plans can go sideways in the crypto world.
As of April 7th, Strategy is still sitting on a sizable pile of Bitcoin: 528,185 coins. They’ve spent roughly $36 billion accumulating this stash since 2020, at an average price of $67,458. That Bitcoin cache, currently valued at over $43 billion, represents nearly 3% of the entire Bitcoin supply. That’s a lot of faith in a single digital asset. They ended their initial buying spree by adding 22,048 bitcoin for $1.9 billion.
MSTR Takes a Beating
Last week’s “Liberation Day” tariff event wasn’t kind to anyone, least of all Strategy’s stock. Global financial markets took a beating, and Asian stocks went into a full-blown panic. The total cryptocurrency market shrank by over 10% in 24 hours, dropping the industry’s market cap to $2.5 trillion. It’s a stark reminder that crypto isn’t immune to global economic forces.
The GMCI 30, which tracks the top 30 digital assets, fell almost 12% in the same period. MSTR, predictably, buckled under the pressure. Strategy’s stock was down more than 8% in pre-market trading on Monday. It’s a tough day to be a Bitcoin maximalist, to say the least. But hey, volatility is part of the game, right?
The situation highlights a fundamental truth about Bitcoin and companies like Strategy: they’re intertwined with the broader financial world. A global economic shockwave doesn’t just affect traditional markets; it ripples through the crypto space as well. It’s a lesson in interconnectedness, and a reminder that diversification isn’t always a bad idea.
Strategy’s position is…unique. They’ve essentially tied their fate to the success of Bitcoin. While that strategy has yielded significant gains in the past, it also exposes them to substantial risk. The current market downturn is a clear demonstration of that risk. It’s a high-stakes game, and right now, Strategy is losing.
The question now is, what will Strategy do next? Will they double down on their Bitcoin bet, hoping for a recovery? Or will they adjust their strategy, perhaps diversifying their holdings or reducing their exposure to crypto? Only time will tell. But one thing is certain: the next few months will be crucial for the future of Strategy and its Bitcoin treasury.