Bitcoin-focused Strategy (formerly MicroStrategy) is set to report a $5.9 billion unrealized loss in Q1 2025 due to a new accounting rule that requires valuing Bitcoin at market prices.
The company, which holds 528,185 BTC, paused its buying spree between March 31 and April 6 and saw its stock drop over 14% after Bitcoin’s price fell sharply.
Previously, Strategy treated Bitcoin as an intangible asset, only recognizing gains when sold—a strategy co-founder Michael Saylor opposed.
Much of the Q1 loss comes from Bitcoin’s 12% price drop and Saylor’s $7.79 billion in 2025 purchases, now down about $1 billion on paper. Despite the loss, Strategy’s retained earnings will rise by $13 billion due to the accounting change.
Strategy, the first public company to adopt Bitcoin as a treasury reserve, saw its shares surge as investors viewed it as a Bitcoin proxy. However, the stock’s momentum has slowed, recently earning its first sell rating.
The company’s last BTC purchase was on March 22. Still, Saylor remains optimistic, calling Bitcoin “resilient in a world full of hidden risks.”
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