Strategy Says Q1 Profit Doubtful Given Nearly $6 Billion in Unrealized Bitcoin Losses

Strategy Do not expect a profit from the first quarter, given billions of dollars in non-realized losses on his Bitcoin Holdings, the company said Monday.

The Tysons, the Virginia-based company former known as MicroStrategy-stoned the value of his Bitcoin Holdings in the first quarter $ 5.91 billion on paper, according to an application for the Securities and Exchange Commission.

“We may not be able to regain profitability in future periods, especially if we suffer considerable non -realized losses with regard to our digital assets,” the company said, adding that a tax benefit of $ 1.69 billion should partially compensate for losses in the first quarter.

In the past week, strategy no longer bought Bitcoin, so that the property remained unchanged at 528,185 Bitcoin, worth around $ 41.3 billion. In the first quarter, Strategy spent $ 7.7 billion in Bitcoin, which made it actively collected for an average price of around $ 95,000 per coin.

Because the rates of US President Donald Trump have battered risk-on assets, the price of Bitcoin has fallen to a low-month-old low. Around noon in the eastern time, the leading digital active act of handcocks changed around $ 78,200, according to Crypto Data Provider Coentecko.

Since the strategy started buying Bitcoin in 2020, the company has spent $ 35.6 billion on the active, according to an average price of $ 67,485 per bitcoin, according to Saylor Tracker. Based on that average bitcoin price, the strategy has risen around 16.5% on its bet.

Strategy has adopted $ 8.2 billion in debts to buy more Bitcoin than usual, while issuing products such as convertible debts and perpetual preference shares. Between its so -called “struggle” and “strike” offers, strategy is required to pay $ 146 million in dividends annually.

Before it became a Bitcoin-purchasing machine, the strategy was known for its business analysis software company, which “did not generate positive cash flow in the recent periods” and it may not help to meet its financial obligations, according to the company.

In order to meet its financial obligations, Strategy said that it is planning to accept more debts, to issue ordinary shares or to perform more offers from preferential shares and convertible debts.

Strategy has not had a profitable quarter since the company achieved a profit per share of $ 0.32 at $ 124 million in income in the fourth quarter of 2023, according to Macrotrends.

On Monday, strategy shares fell by 10.6% to $ 262, according to Yahoo Finance. Although it is particularly free from last year’s peak of $ 543, it was still above the price of $ 233 election day.

Published by James Rubin