April 8 – Strategy (NASDAQ:MSTR), the Virginia-based software firm formerly known as MicroStrategy, warned that it expects to report a loss for the first quarter of 2025 after recording $5.91 billion in unrealized Bitcoin losses.
The company holds 528,185 Bitcoin, acquired at an average of $67,485, now valued at about $41.3 billion. It said a $1.69 billion tax benefit will partially offset the hit. However, Strategy acknowledged that future profitability remains uncertain due to volatility in digital asset values.
Bitcoin has dropped to around $78,200, marking a five-month low. The decline follows renewed market unease over former President Donald Trump’s proposed tariffs, which have weighed on risk assets. The Nasdaq is down roughly 10% month-to-date, while the S&P 500 has shed over 7%.
Despite the downturn, Strategy spent $7.7 billion in Q1 on Bitcoin at an average price of $95,000 per coin. It paused additional purchases in April following a sharp drop in BTC prices.
The company said its software segment continues to operate without positive cash flow, forcing reliance on debt and equity offerings. Strategy shares fell 10.6% to $262 Monday.
This article first appeared on GuruFocus.
