The Strategy company, known for its bitcoin investments, has reported significant unrealized losses of $5.91 billion for Q1 2025.
Loss Overview
Between January and March 2025, the company purchased 80,715 BTC for a total of $7.66 billion through its stock issuance program. The average acquisition price was $94,922, while bitcoin closed the quarter below $84,000. This resulted in an 11.82% decline, marking the worst quarterly performance since 2018.
Accumulation Summary
Currently, the company holds 528,185 BTC, acquired for approximately $36 billion, representing an average purchase price of $67,458. Despite the losses, the current valuation of these holdings exceeds $43 billion, representing about 3% of the total circulating bitcoin supply capped at 21 million coins.
Future Prospects
After dropping below $75,000, bitcoin is currently struggling to exceed $80,000, putting Strategy in a delicate position. Although the company remains technically profitable on its past acquisitions at an average price of $67,458, recent purchases at $94,922 are already causing unrealized losses of about 15%. If bitcoin continues to stagnate around $80,000, Strategy could continue to accumulate losses, especially if the bearish market persists.
The company's strategy remains heavily exposed to bitcoin volatility. While its BTC accumulation strategy continues to show impressive valuation, the company will need to closely monitor market fluctuations, as any prolonged decline could jeopardize its position and future profitability.
