MicroStrategy, the largest corporate Bitcoin investor now known as Strategy, projects unrealized digital asset losses of $5.91 billion for Q1 2025, partially offset by $1.69 billion in income-tax benefits. The company anticipates these losses will result in a net quarterly loss.
Between March 24-30, Strategy purchased 22,048 bitcoin for $1.92 billion at an average price of $86,969. However, the company made no additional Bitcoin purchases between March 7 and April 7, according to its SEC filings.
As of March 31, Strategy held 528,185 bitcoin acquired at an average purchase price of $67,458, with the holdings valued at $43.55 billion at quarter-end. During Q1, the company generated $7.69 billion from various share offerings to fund its cryptocurrency investments.
Analysts expect Strategy to report a Q1 loss of $0.11 per share, improving from last year’s $0.31 loss, with revenue projected to increase slightly to $116.8 million from $114.9 million. The company typically releases Q1 results in late April or early May.
Bitcoin Price Swings
Bitcoin’s price has experienced significant volatility, falling below $74,500 from around $83,000 on Sunday before recovering to approximately $78,500 late Monday. The cryptocurrency is down nearly 9% over the past month amid broader market concerns about President Trump’s tariff policies potentially pushing the economy toward recession.
Although the company refrained from adding to its Bitcoin holdings over the past week, it’s worth noting that BTCUSD carried on with its slump and looks poised for more downside, given emerging price patterns as markets opened in the red earlier this week. This could exacerbate Strategy losses before the company releases its official numbers, possibly even leading to more losses in its share price.
Strategy’s stock dropped 10.2% to $264.11 in midday trading Monday and is now down 7.4% year-to-date, retreating further from its 50-day moving average. Other crypto-related investments also suffered, with Coinbase stock declining 2% (down almost 37% in 2025) and spot Bitcoin ETFs trading 7% lower.
The company warned that future profitability remains uncertain, especially if Bitcoin’s value continues to decline. “A significant decrease in the market value of our bitcoin holdings could adversely affect our ability to satisfy our financial obligations,” Strategy stated in its filing.
With over $8.2 billion in debt requiring approximately $35 million in annual interest payments, plus more than $146 million in yearly stock dividends, Strategy faces growing financial pressures. The company acknowledged that its core enterprise analytics software business “has not generated positive cash flow from operations in recent periods” and may not produce sufficient revenue to meet these obligations.
Next Options For Strategy?
If its primary business doesn’t improve, Strategy would need to issue new stock or take on additional debt to meet its obligations – strategies that become increasingly difficult to execute if Bitcoin’s price falls further. The company might ultimately be forced to sell Bitcoin below its cost basis to satisfy financial commitments unless a major rebound in prices is seen soon.
Led by Executive Chairman Michael Saylor, Strategy began purchasing Bitcoin in 2021 as an inflation hedge, transforming from a software company serving clients like Hilton and Crate & Barrel into primarily a Bitcoin holding company. This year, the company rebranded from MicroStrategy to Strategy, adopting a new orange logo featuring the Bitcoin symbol.
