Strategy Posts $5.91B Loss on Bitcoin, Stops Buying Despite Drop Near $74K

YEREVAN (CoinChapter.com) — Strategy reported a $5.91 billion unrealized loss on its digital assets in Q1 2025, according to a new SEC filing on April 7. The loss comes after Strategy adopted new accounting standards—ASU 2023-08—effective January 1, 2025, which require companies to report impairments based on the fair market value of Bitcoin and other crypto assets.

The report also includes a key statement:

“We may not be able to regain profitability in future periods, particularly if we incur significant unrealized losses.”

According to the filing, this loss will contribute to a net loss for the quarter, despite a $1.69 billion income tax benefit tied to the write-down.

Bitcoin Drops, But Strategy Pauses Purchases

Between March 31 and April 6, Bitcoin (BTC) saw sharp volatility. According to TradingView data, BTC traded around $81,500 on March 31 and climbed to a weekly high of $87,000 on April 2. It then dropped below $74,000 on April 6, before slightly recovering above $78,000 on April 7.

Despite this wide price range, Strategy did not buy any Bitcoin during the week. The company also made no moves to sell Class A common stock, which it typically uses to finance its BTC purchases.

The inactivity came right after Strategy announced on March 31 that it had purchased 22,000 BTC. That acquisition added to its growing Bitcoin holdings, but the company paused all buying the following week despite the price dipping over 15% from the recent peak.

As shown in the TradingView chart, BTC traded under the 50-hour EMA for most of the week, confirming a short-term downtrend. The drop on April 6 pushed BTC to a low near $73,800, then bounced back to nearly $79,000 by April 7, 16:21 UTC, with a recorded volume of 287 BTC on Bitstamp.

As of April 7, 2025, Strategy holds 528,185 BTC. The total cost of these holdings is about $35.6 billion, with an average purchase price of $67,458 per BTC.

The unrealized loss shows how far Bitcoin’s market price has fallen below the company’s average cost. However, these are not realized losses. Strategy still holds the coins and has not sold them.

The new accounting rule forces companies to report current market values. This led to the large reported loss without requiring any selling.

Saylor Comments on Bitcoin Despite Company Loss

Michael Saylor, co-founder and former CEO of Strategy, posted multiple comments about Bitcoin during the same period. He remained vocal online even though his company halted Bitcoin purchases.

On April 3, he posted:

“Bitcoin is most volatile because it is most useful.”

This post followed Bitcoin’s drop from $87,100 to $82,000, a move influenced by a tariff announcement from U.S. President Donald Trump.

In another post, Saylor added:

“Today’s market reaction to tariffs is a reminder: inflation is just the tip of the iceberg. Capital faces dilution from taxes, regulation, competition, obsolescence, and unforeseen events. Bitcoin offers resilience in a world full of hidden risks.”

Though Strategy took no action in the market, Saylor continued to engage with the crypto audience on X.

The filing confirms that Strategy’s profitability is at risk, especially if future quarters bring more unrealized losses. It adds that the results of operations and financial condition may be “materially adversely affected.”

This aligns with the broader financial caution seen in the filing, with no signs of additional purchases during the week in question.