Strategy, formerly known as MicroStrategy, has released a report to the U.S. Securities and Exchange Commission (SEC) indicating an unrealized loss of $5.91 billion for the first quarter of 2025. The causes of this loss stem from investments in Bitcoin, which unfortunately proved to be insufficiently profitable under current market conditions.
This is reported by Business • Media
Details on Investments and Losses
According to the company’s statement, as of March 30, 2025, it owned 528,185 BTC, purchased at an average price of $67,458. During the quarter, the company invested an additional $7.66 billion in 80,715 BTC at an average price of $94,922. However, due to the collapse of the cryptocurrency market, Bitcoin fell below $75,000, leading to a valuation of new assets at $6.38 billion, and the unrealized loss reached $1.27 billion.
Financial Implications and Action Plan
It is noted that at the beginning of the year, the company’s portfolio was valued at $41.7 billion, but ultimately, due to falling prices, the value of assets decreased to $43.5 billion. The company reported that the unrealized loss will negatively impact its financial results, and there is a likelihood that a net loss will be recorded in Q1.
“We may find ourselves unable to restore profitability in future periods, especially if we incur significant unrealized losses related to our digital assets,” the report states.
To cover operational expenses and financial obligations, the company plans to issue additional shares and bonds; however, doing so in a market downturn will be challenging. It is also reported that as of March 31, 2025, the company’s debt stood at $8.22 billion, with annual servicing costs exceeding $35 million.