What to know:

• Strategy did not purchase any Bitcoin from March 31 through April 6, maintaining its current holding of 528,185 BTC.
• The company estimates it will register a loss nearing $6 billion on its Bitcoin assets for the first quarter.
• The average buying cost for Strategy’s Bitcoin stock has escalated to approximately $67,500, while the current market price stands at $77,000.

While navigating market volatility, Strategy (MSTR) opted not to increase its Bitcoin (BTC) portfolio last week. The firm anticipates announcing a significant net loss for the first quarter, reflecting an unrealized loss of $5.91 billion on its Bitcoin holdings, as noted in a recent filing released Monday. This development follows the introduction of new accounting standards that mandate crypto assets to be evaluated at market prices. A projected tax benefit of $1.69 billion might help mitigate some of this loss.

Strategically, the company raised a total of $7.69 billion over the quarter, primarily through common stock sales amounting to $4.4 billion, with the remainder sourced from preferred stock offerings. Most, if not all, of these funds were utilized to acquire Bitcoin at substantially higher prices compared to the current valuation of $77,000.

Indeed, the average acquisition cost of the company’s Bitcoin stack has reached nearly $67,500, suggesting that they are currently only about 14% ahead on their investments.

In the early trading on Monday, MSTR shares dropped by 9%, reflecting a 10% decline year-to-date, although they’re still up by 77% on a year-over-year basis.

Disclaimer: Portions of this article were created with AI assistance and subsequently reviewed to align with our accuracy standards. Please refer to CoinDesk’s full AI Policy for more information.