Strategy Halts Bitcoin Purchases, Projects $5.91 Billion Q1 Loss

Strategy (MSTR) has paused its capital raising amid market volatility and did not increase its bitcoin holdings last week. The company anticipates a net loss for Q1 due to a $5.91 billion unrealized loss on its bitcoin assets, following new accounting rules that require crypto to be marked to market. A $1.69 billion tax benefit is expected to partially mitigate this loss.

Key facts include:

MSTR raised $7.69 billion in the quarter, with $4.4 billion from common stock sales.
Most funds were used to purchase bitcoin at higher prices than the current price of $77,000.
The average purchase price of MSTR's 528,185 BTC holdings is nearly $67,500, resulting in a 14% gain.
MSTR shares are down 9% early Monday and 10% year-to-date, but up 77% year-over-year.