Michael Saylor’s Strategy Sits Out Dip, Reports $5.9B Loss After Accounting Change
Bitcoin-focused Strategy (previously MicroStrategy) has said it will register an unrealized loss of $5.9 billion in the first quarter after adopting an accounting change that requires valuing the digital asset at market prices.
Strategy is the largest corporate holder of BTC and currently holds 528,185 BTC. The company did not acquire any Bitcoin between March 31 and April 6.
Strategy Registers $5.9 Billion Loss
Strategy saw its shares plunge over 14% on Monday after markets opened in the red after Bitcoin wiped out almost all its gains since Donald Trump won the US Presidential election in November 2024. Strategy and other corporate holders of Bitcoin are being made to recognize the unrealized changes, often producing big swings in earnings or, in Strategy’s case, significant losses during the quarter. Strategy waited until the first quarter before adopting the accounting changes that were approved that year, which required the company to value the asset at market prices.
Prior to the accounting change, Strategy classified its BTC holdings as intangible assets, similar to brand recognition or trademarks. The designation allowed the company to permanently mark down the value of its holdings when the Bitcoin price dropped. The company could recognize any gains only when tokens were sold, something Saylor refused to do, even stating that his digital wallet keys should be burned when he dies.
Saylor’s BTC Shopping Spree
A relatively substantial part of the first-quarter loss is due to Saylor’s recent BTC buying spree. Saylor’s recent purchases led to roughly $1 billion in paper losses on the $7.79 billion Strategy spent on Bitcoin acquisitions in 2025. Strategy held $41.8 billion worth of Bitcoin heading into the year, a figure that dropped by almost $5 billion in the first quarter thanks to a 12% decline in the price of BTC. According to Bloomberg, this was about $6 billion in market-to-market losses.
However, the company’s retained earnings will whipsaw into positive territory thanks to a $13 billion boost from the accounting change. Strategy has established itself as the first public company to buy Bitcoin, making it part of a capital acquisition strategy, with co-founder and chairman Michael Saylor stating the firm needed to embrace the policy to survive. The firm caught the attention of Wall Street after adopting this approach, with its shares taking off as speculators used it as a proxy for the cryptocurrency. Saylor took advantage of this burgeoning demand, selling shares to purchase more Bitcoin. The company ultimately began convertible shares and preferred shares offerings to fund its buying spree.
However, with Bitcoin's price struggling along with other risk assets, Strategy’s burgeoning share price rise has also slowed. Last week, Strategy’s shares got their only sell rating after boutique equity research firm Monness, Crespi, Hardt, and Co. cut its view on the firm.
Strategy Pauses Bitcoin Purchases
Strategy has paused its Bitcoin buying spree after deciding not to add to its crypto reserves last week despite the price dropping below $80,000. The company confirmed it had made no new Bitcoin purchases between March 31 and April 6 nor sold any Class A shares typically used to fund Bitcoin buys. The decision is a rare pause for a company known for its aggressive buying strategy, which has seen it accumulate 528,185 BTC at an average price of $67,458. BTC’s recent drop below $80,000 put the company’s holdings into the red, leading to a reported unrealized loss of $5.9 billion. Strategy’s last Bitcoin purchase came on March 22, when it purchased 22,000 BTC shortly before volatility returned to the market. However, Saylor remained bullish, stating,
“Bitcoin is most volatile because it is most useful. Bitcoin offers resilience in a world full of hidden risks.”