U.S. Firm Loses More Than $14 Billion as Bitcoin Falls
A U.S. company reported more than $14 billion in losses after Bitcoin’s sharp first-quarter decline slashed the value of its holdings.
Michael Saylor’s Strategy said it took a roughly $14.5 billion unrealized hit in the first quarter after the value of its Bitcoin holdings fell sharply, reflecting the cryptocurrency’s steepest first-quarter drop since 2018. Bitcoin fell more than 20% during the period, leaving the company exposed to a major paper loss on its vast digital asset position.
The company, formerly known as MicroStrategy, said it held more than $50 billion in digital assets at the end of the quarter. The result was amplified by new accounting rules adopted last year, which require changes in the fair value of Bitcoin holdings to be recorded directly in earnings, increasing volatility in quarterly results.
Despite the loss, Strategy said it bought 4,871 more Bitcoin worth about $330 million between April 1 and April 5, showing it is still pressing ahead with its aggressive accumulation strategy. The company’s average purchase price for that latest batch was about $67,700 per Bitcoin, even as the token remained well below its 2025 peak.
The decline also pushed the market value of Strategy’s Bitcoin stash below the company’s average acquisition cost, which was reported at more than $75,000 per coin. That shift has added pressure to a model that relied heavily on rising Bitcoin prices and a strong premium in Strategy’s stock to keep funding further crypto purchases.
Still, the company said it held about $2.25 billion in cash, giving it enough liquidity to cover interest payments and other financial obligations for more than two years. That cash cushion may help Strategy weather further volatility if crypto markets remain under pressure in the months ahead.
Strategy has become the world’s best-known corporate Bitcoin buyer under Saylor’s leadership, turning its balance sheet into a leveraged bet on the cryptocurrency. The company’s approach helped drive investor enthusiasm during Bitcoin’s rally, but it has also made its financial results highly sensitive to swings in crypto prices.
The latest quarterly loss highlights both the scale of Strategy’s Bitcoin exposure and the risks of tying a corporate treasury so closely to a volatile digital asset. Even so, the company’s continued buying suggests it remains committed to the long-term wager despite the market setback.
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