In a volatile start to the week, shares of Strategy (NASDAQ: MSTR), formerly MicroStrategy, sank sharply after the company disclosed a staggering $5.91 billion in unrealized bitcoin losses for the first quarter.
The software firm, also known for its massive bitcoin treasury, made the announcement in a Securities and Exchange Commission (SEC) filing early Monday. Despite securing $1.69 billion in income-tax benefits to cushion the blow, the company is bracing for a net loss for Q1.
Strategy’s Q1 Bitcoin Bet Backfires
Between March 24 and March 30, Strategy added another 22,048 bitcoins to its holdings at an average price of $86,969—totaling $1.92 billion in purchases. However, the value of bitcoin has since slumped, adding to the firm’s already volatile position.
- Bitcoin Holdings as of March 31: 528,185 BTC
- Average Purchase Price: $67,458
- Recent Bitcoin Price: ~$78,700 (down 4.5% in 24 hours)
- Q1 Proceeds from Share Offerings: $7.69 billion
Notably, Strategy did not purchase any bitcoin between March 7 and April 7, indicating a pause in its aggressive accumulation strategy as the market turned.
Bitcoin Price Slumps Amid Broader Sell-Off
Bitcoin dropped dramatically on Sunday, falling from around $83,000 to below $74,500 overnight. Though it rebounded slightly Monday morning to $78,700, the cryptocurrency remains down nearly 9% over the past month, weighed by rising global tariff fears and macroeconomic uncertainty.
This recent correction has:
- Dragged the Nasdaq down ~10.4% month-to-date
- Pulled the S&P 500 down over 7%
- Impacted major crypto-related stocks and ETFs:
- Coinbase (COIN) down over 3% Monday, extending its 2025 losses to 35%
- iShares Bitcoin Trust (IBIT) and other spot ETFs dropped more than 6%
Wall Street’s Outlook for Strategy
Despite the headline losses, analysts polled by FactSet remain somewhat optimistic. They expect:
- Q1 EPS: -$0.11, compared to -$0.31 last year
- Revenue: $116.8 million, slightly up from $114.9 million
The company typically reports Q1 results in late April or early May but has yet to confirm an exact date.
Strategy Stock Performance
Before Monday’s sell-off, MSTR stock had shown only modest gains for the year—up 1.4% through Friday’s close. Monday’s 6% drop pushed shares further below their 50-day moving average, raising concerns about technical support levels.
Key Takeaways for Bitcoin Investors
- Strategy’s bitcoin-focused strategy leaves it heavily exposed to crypto volatility
- Massive unrealized losses signal continued earnings turbulence
- Bitcoin’s price movement continues to dictate sentiment around MSTR
- Investors should monitor macro risks like tariffs and monetary policy impacting broader markets
As the company doubles down on its identity as a bitcoin proxy, all eyes are on crypto’s next move—and whether Strategy can weather the storm without further erosion in shareholder value.
– More Bitcoin Updates and News from FingerLakes1.com
This content is brought to you by the FingerLakes1.com Team. Support our mission by visiting www.patreon.com/fl1 or learn how you send us your local content here.