Strategy, a significant player in the Bitcoin market, has paused its purchases, citing substantial losses.
Pause in Bitcoin Purchases
Last week, Strategy did not increase its Bitcoin assets as the cryptocurrency price fell below $87,000. According to a filing with the US Securities and Exchange Commission on April 7, the company made no Bitcoin purchases from March 31 to April 6. Bitcoin prices first started around $82,000, then reached $87,000 on April 2 before dropping again.
Company's Unrealized Losses
The filing also disclosed a significant unrealized loss on its digital assets. 'Our unrealized loss for the quarter ended March 31, 2025, was $5.91 billion, which is expected to result in a net loss for the quarter,' the company stated. These losses are anticipated to be partially offset by a related income tax benefit of $1.69 billion. As of April 7, the company held 528,185 Bitcoin acquired at a total cost of $35.6 billion.
Support from Michael Saylor
Despite the pause in acquisitions, Strategy's co-founder Michael Saylor continues to promote Bitcoin on social media. 'Today's market reaction to tariffs is a reminder: inflation is just the tip of the iceberg,' Saylor posted. In another post on April 3, he claimed, 'Bitcoin is most volatile because it is most useful', adding that Bitcoin offers protection against multiple threats to capital, including taxes and regulation.
The halt in Bitcoin purchases by Strategy indicates a shift from its previous aggressive acquisition strategy. Michael Saylor's support reflects his confidence in Bitcoin's future, despite the company's current financial challenges.
