Strategy Purchases 4,871 BTC Worth $330M Despite Recording $14.5B Unrealized Losses in First Quarter
The company continued its Bitcoin acquisition strategy by purchasing 4,871 BTC valued at $329.9 million, even as it disclosed unrealized losses totaling $14.46 billion while growing its cryptocurrency reserves.
The world's largest publicly traded company holding Bitcoin, Michael Saylor's Strategy, has returned to purchasing BTC following a pause during the last week of March when no acquisitions were reported.
According to an 8-K regulatory filing submitted to the US Securities and Exchange Commission on Monday, Strategy purchased 4,871 Bitcoin (BTC) valued at $329.9 million during the previous week.
The company paid an average of $67,718 per Bitcoin for these acquisitions, which is lower than Strategy's cumulative average purchase price of $75,644. With these latest purchases, Strategy now owns 766,970 BTC, representing a total investment of approximately $58 billion.
Alongside the disclosure of its latest Bitcoin acquisitions, Strategy released its first-quarter financial performance, which revealed a $14.46 billion unrealized loss on its digital asset portfolio and a $2.42 billion deferred tax benefit.
Deferred tax asset offset by valuation allowance as bitcoin trades below cost basis
According to Strategy, its Bitcoin portfolio remains valued below the company's cost basis, leading to the establishment of a deferred tax asset connected to unrealized losses from its digital asset investments.
By the end of March 31, the company had established a deferred tax asset of $1.73 billion associated with those unrealized losses, which was counterbalanced by an equivalent $1.73 billion valuation allowance applied against that sum.
Because the fair value of Strategy's Bitcoin holdings is below its cost basis, Strategy expects to establish an additional valuation allowance of $0.5 billion against these deferred tax assets.
Strategy
In early February, Strategy witnessed Bitcoin drop beneath its average acquisition price, representing the first occasion since late 2023 that BTC has traded under its cost basis.
Notwithstanding the price decrease, the company has maintained its Bitcoin accumulation efforts, purchasing approximately 54,000 BTC since Feb. 2. The company demonstrated particularly aggressive purchasing behavior in March, executing some of its largest weekly acquisitions on record throughout that month, with total monthly purchases amounting to 41,362 BTC.
For the entire first quarter of 2026, Strategy's Bitcoin acquisitions totaled 89,316 BTC, representing an aggregate investment of roughly $6.3 billion.
$21 billion offering of STRC and a new $21 billion MSTR offering
According to Strategy's announcement, the company is revising its at-the-market (ATM) program structure, which includes launching a new $21 billion offering of Stretch (STRC) stock alongside a new $21 billion offering of Common A (MSTR) stock. Additionally, the company has discontinued its previous Strike (STRK) stock offering and introduced a new $2.1 billion STRK stock offering.
The capacity figures cited for STRC and MSTR stock offerings represent the total available capacity combining both the current programs and the newly established offerings. According to the company, sales utilizing the STRC and MSTR increases will commence after the existing capacity has been substantially exhausted.
Between March 30–31, Strategy completed sales of approximately 2.28 million shares of STRC and 582,550 shares of MSTR, producing net proceeds of about $299.3 million. Subsequently, during the period of April 1–5, the company sold an additional 1 million shares of STRC and 593,294 shares of MSTR, generating approximately $174.6 million in proceeds.