Strategy, the biggest corporate holder of bitcoin, reported a fifth consecutive quarterly loss on Thursday due to an unrealized loss on its cryptocurrency holdings.
Bitcoin surged to record highs following Donald Trump’s November 2024 presidential election victory, propelling the shares of Strategy to an all-time high, which contributed to earning it a spot in the Nasdaq 100 index in December.
However, a wave of sweeping tariffs announced by Trump has since unsettled global markets, dampening risk appetite and potentially triggering investors to pull away from the crypto markets.
Michael Saylor’s Strategy, formerly MicroStrategy, reported a quarterly loss of $5.91 billion from its digital assets due to a quarter-end bitcoin price of $82,445.
Strategy moved to a new accounting rule in the first quarter, which allows the company to fairly value its unrealized gains or losses on its crypto holdings.
“One fundamental difference now under fair value accounting is that our holdings are marked on the last day of every quarter, not throughout the quarter as before,” said financial chief Andrew Kang on a post-earnings call.
The company also announced a new $21 billion at-the-market common stock equity offering and intends to use proceeds for further acquisition of bitcoin.
The Tysons Corner, Virginia-based company held 553,555 bitcoins for $37.90 billion as of April 28, 2025.
Strategy’s net loss was $4.22 billion, or $16.49 per share, in the three months ended March 31, compared to a loss of $53.1 million, or $0.31 per share, a year earlier.
In March 2025, GameStop announced its board’s unanimous decision to add bitcoin as a treasury reserve asset, aligning with the Strategy’s approach.
This move highlights how companies are exploring alternative assets such as bitcoin to bolster their financial positions, especially when traditional revenue streams face headwinds.
Strategy shares are up about 32 per cent so far this year, compared with a near 6 per cent fall in the Nasdaq 100 index.
