Key Takeaways:
- Virginia-based business intelligence firm MicroStrategy reported to the SEC that it did not purchase any Bitcoin for its treasury during the week between March 31 and April 6, while zero shares of its preferred stock were sold over the same period.
- According to its latest 8-K filing, the company has not sold any Bitcoin and continues to hold the 528,185 BTC ($42.27 billion) that was acquired for an average price of $67,458. Strategy is the world’s largest corporate holder of Bitcoin, controlling 2.7% of its circulating supply.
- The pause comes amid escalations of Trump’s tariff wars against America’s trading partners, which have negatively affected equities, crypto, and gold markets. Despite acquiring 80,715 BTC during Q1 2025, the assets are trading well below their purchase price, resulting in the company reporting a $5.9 billion loss.
- Strategy also clarified that its shareholders cannot claim an ownership interest in its Bitcoin holdings. Since MSTR is not an ETF, the stock does not have redemption rights over the company’s assets.
Strategy, formerly MicroStrategy, has revealed in its latest U.S. Securities and Exchange Commission (SEC) report that it paused Bitcoin purchases last week. The business intelligence firm that has been on a streak of buying the cryptocurrency every week previously paused BTC acquisitions between September 30 and November 11, 2024.
Strategy Pauses Bitcoin Purchase, Reports $5.91 Billion Net Loss In Q1 2025
The Michael Saylor-founded software company did not buy any Bitcoin between March 31 and April 6, with the latest purchase coming during the week through March 30, when it spent $1.9 billion to acquire 22,048 BTC. In its 8-K filing, Strategy stated that its so-called “At the Market” (ATM) program was paused entirely, and zero shares of Class A common stock or Series A Perpetual Strike Preferred Stock were sold last week.
As of March 30, the company owned 528,185 BTC, worth $42.27 billion at the current rate, which was acquired for an average price of $67,458. They hold approximately 2.7% of Bitcoin’s total circulating supply of 19.84 million coins, spending a combined $35.63 billion to buy them to become the largest corporate holder of the flagship cryptocurrency
The pause may suggest that Strategy’s management is taking a protective approach amid the ongoing market volatility due to President Trump’s announcement of tariffs on imports from nearly 200 countries and fears of a recession in the United States. There is also an indication that the company believes the apex cryptocurrency could bottom out further before resuming purchases.
The price of Bitcoin has fallen 4.2% since the end of the first quarter and dropped to its lowest valuation of the year at $77,000 over the past week.
The 8-K filing also shows that the company bought 80,715 BTC for $7.66 billion during the first quarter of 2025, at an average price of $94,922 per coin. However, with Bitcoin trading well below those prices at the end of Q1 2025, Strategy said it recorded an unrealized loss of $5.91 billion on its investment. As a result, despite a $1.69 billion tax benefit, the Virginia-based company is widely expected to report a net loss for the quarter.
MSTR Shareholders Cannot Claim Ownership of Bitcoin Holdings
The company also highlighted that MSTR shareholders cannot claim ownership interest in any of its Bitcoin holdings. Moreover, Strategy’s stock is not an exchange-traded fund (ETF) and doesn’t provide redemption rights for its assets. The software firm continues to hold its encumbered BTC as well as its associated debts and a variety of other business assets.
Strategy has been stocking up on Bitcoin since August 2020, when its chairman and then-CEO, Michael Saylor, announced the adoption of the apex cryptocurrency as a primary treasury-reserve asset. Last year, he claimed that Bitcoin was a better reserve asset compared to other financial assets like stocks, bonds, and even gold.
Despite BTC trading 20% below its all-time high of $109,000 from January, at $80,000, the company’s holdings are worth over $6.06 billion, or 17%, more than what it spent to acquire them. The strategy has been one of the biggest beneficiaries of Trump’s re-election, given that the President ran on a pro-crypto platform and signed an executive order in March declaring Bitcoin as a strategic reserve asset for the U.S. government.
However, Strategy’s MSTR stock has fallen over 30% since Trump’s inauguration, while Bitcoin prices have dropped 24.2% since the turn of the year. This downturn can be largely attributed to the President’s tip-toeing foreign trade policy. During the same period, the S&P 500 Index shed 15%. MSTR is down 41.9% since its post-election peak close of $473.83, recorded on November 30, while the S&P 500 has declined 13.9% over the same time.
At the time of writing, Bitcoin (BTC) is trading at $79,789 – up 3.98% in the last 24 hours.