Saylor’s Strategy Faces $6 Billion in Unrealized Losses as Bitcoin Selloff Disrupts Buying Momentum

Strategy, the company formerly known as MicroStrategy, has reported nearly $6 billion in unrealized losses tied to its Bitcoin treasury for the first quarter of 2025. The disclosure, detailed in an 8-K filing with the U.S. Securities and Exchange Commission on April 7, comes as macroeconomic pressures have fueled a sharp downturn in digital asset markets.

With Bitcoin’s price tumbling below $80,000, the firm’s aggressive crypto buying strategy is facing its toughest test since 2018. This marks the worst quarterly performance for Bitcoin in over half a decade, amplifying Strategy’s financial strain and halting its recent purchasing spree.

Throughout the first quarter, Strategy invested heavily, snapping up 80,715 Bitcoin for $7.66 billion through cash raised in its at-the-market equity offering program. The average purchase price stood at $94,922 per coin, a figure that now looms as the value has dipped well below that mark. The company’s buying momentum screeched to a halt between March 31 and April 4, a period during which it saw no demand for its class A common stock, MSTR, or its perpetual strike preferred offering, STRK.

By the end of the quarter, Strategy capped its acquisitions with a final purchase of 22,048 Bitcoin for $1.9 billion, bringing its total holdings to 528,185 BTC. Valued at over $43 billion as of April 7, this stash represents nearly 3% of Bitcoin’s capped supply of 21 million coins, acquired since 2020 at an average cost of $67,458 per coin.

Global Market Turmoil Adds Pressure

The broader context for Strategy’s challenges emerged last week with the so-called “Liberation Day” tariff event, which sent shockwaves through global financial markets. As investors grappled with uncertainty, Asian stock indices plummeted, and the cryptocurrency sector felt the ripple effects. In just 24 hours, the total market cap of digital assets contracted by more than 10%, dropping to $2.5 trillion. This rapid compression has intensified scrutiny on Strategy’s Bitcoin centric approach, which has long positioned the firm as a trailblazer in corporate crypto adoption. With $36 billion invested in its Bitcoin treasury over the past five years, the company’s fortunes remain intricately tied to the volatile asset’s performance.

For now, Strategy’s leadership appears to be navigating uncharted waters. The unrealized losses, while significant, remain on paper, leaving room for recovery if Bitcoin’s price rebounds. However, the lack of buying activity in early April signals a potential shift in investor confidence, both in the company’s stock offerings and in the broader cryptocurrency market. As macroeconomic policies continue to shape asset valuations, the coming months will likely determine whether Strategy’s bold bet on Bitcoin can weather this storm or if further adjustments to its playbook are on the horizon.