Efforts to raise capital pending amid market panic, Strategy (MSTR) was not added to Bitcoin (BTC) holdings last week.
Additionally, the company is expected to report a first quarter net loss due to an unrealized loss of $59.1 billion on its Bitcoin holdings, according to a filing on Monday morning. This follows the adoption of new accounting rules that require crypto assets to be marked on the market. The $1.69 billion tax benefits are expected to partially offset the losses.
The strategy totaled $7.69 billion over the quarter, $4.4 billion from common stock sales, and others from preferred stock issuances. Most or all of these funds were used to buy Bitcoin at a price that is much higher than the current $77,000.
In fact, the average purchase price for the company’s 528,185 BTC stack has risen to nearly $67,500. This means that the company only has about 14% of its holdings.
MSTR stocks were 9% lower in early action on Monday, and now down 10% from the previous year, but are 77% ahead of the previous year.
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