Strategy (MSTR) did not add to its bitcoin (BTC) holdings last week, as turbulent market conditions likely paused the company’s aggressive capital deployment strategy.
In a regulatory filing released Monday morning, the firm said it expects to report a net loss for the first quarter, largely due to a $5.91 billion unrealized loss tied to its bitcoin holdings. The loss stems from new accounting standards that now require digital assets to be marked to market. A $1.69 billion tax benefit is expected to partially cushion the impact.
During Q1, Strategy raised a total of $7.69 billion—$4.4 billion via common stock sales and the rest from issuing preferred stock. The capital was largely deployed into bitcoin purchases, many of which occurred at significantly higher prices than today’s level near $77,000.
As a result, the average cost basis on Strategy’s 528,185 BTC has climbed to nearly $67,500. Despite recent market volatility, that puts the company’s holdings about 14% in the green overall.
Shares of Strategy fell 9% in early Monday trading and are now down 10% for the year. However, the stock remains up 77% compared to the same time last year.
