Strategy (MSTR) did not purchase additional bitcoin last week and expects to report a $5.91 billion unrealized loss on its crypto holdings for the first quarter, the company disclosed Monday.
The projected loss follows new accounting rules that require digital assets to be valued at current market prices. A $1.69 billion deferred tax benefit is expected to offset part of the impact.
During Q1, Strategy raised $7.69 billion—$4.4 billion through common stock sales and the remainder via preferred stock. The bulk of the capital was used to buy bitcoin at levels above the current market price of $77,000.
The firm now holds 528,185 BTC with an average cost basis of approximately $67,500, giving it a modest 14% unrealized gain overall.
MSTR shares fell 9% in early trading Monday and are down 10% year-to-date, though they remain up 77% compared to this time last year.
