The company, formerly known as MicroStrategy, has disclosed nearly $6 billion in unrealized losses from its Bitcoin investments for the first quarter of 2025, as detailed in an April 7 filing with the US Securities and Exchange Commission (SEC).
From January to March 2025, the firm acquired 80,715 BTC at a total cost of $7.66 billion, averaging $94,922 per coin.
Unfortunately, due to a significant 11.8% drop in Bitcoin prices during the same quarter—the worst decline seen since 2018—the assets experienced considerable depreciation, culminating in a $5.91 billion paper loss.
Despite these unrealized losses, the firm anticipates a partial offset from a $1.69 billion income tax benefit.
To finance these acquisitions, the company implemented several capital-raising strategies. It raised $4.37 billion from selling its at-the-market Class A common stock and an additional $1.99 billion was obtained through issuing 2030B Convertible Notes.
The firm also secured $593.7 million through the issuance of Perpetual Strike Preferred Stock via public and at-the-market offerings. Additionally, $710 million was raised through the initial sale of Perpetual Strife Preferred Stock.
Throughout the quarter, the company amassed $7.69 billion to support its Bitcoin buying activities.
As of March 31, the firm held 528,185 BTC, acquired for approximately $36 billion, resulting in an average purchase price of $67,458 per coin. At current market valuations, the worth of its Bitcoin holdings surpasses $43 billion.
