Here is the loss of Michael Celor’s strategy on encryption in the first quarter of 2025
The strategy (NASDAQ: MSTR), previously known as Microstrategy, has reported unreasonable losses in encrypted operations for the first three months of 2025, coinciding with the company’s continuity of bitcoin accumulation.
On Monday, April 7 presentation With the Securities and Stock Exchange Committee (SEC), the company unveiled $ 5.91 billion of unreasonable digital asset losses, which are primarily associated with the huge bitcoin treasury.
Michael Celor, which is led by the losses, stated partially it is in part by $ 1.69 billion in the advantages of income tax.
“Our unrealized loss on the digital assets of the quarter ended on March 31, 2025, 5.91 billion dollars, which we expect to lead to a net loss for the quarter ending on March 31, 2025, partially met by the relevant income tax of $ 1.69 billion,” the company stated.
Bitcoin Challenge period
This announcement comes during a difficult extension of BTC, which decreased to less than the support level of $ 80,000. BTC has been trading at $ 79295 at the time of the press, as it has decreased more than 4 % in the past 24 hours.
As of March 31, 2025, the strategy held 528185 Bitcoins, which was obtained at an average price of $ 67,458 per currency, amounted to $ 35.63 billion in total purchase costs. Based on the price of the Bitcoin market at the time of the reports, the company’s BTC Holdings value was estimated at 41.87 billion dollars.
Despite the unrealized losses, the strategy was pressed with the Bitcoin purchase in the first quarter, where it got 22,048 Bitcoins between March 24 and March 30 for $ 1.92 billion at an average price of 86,969 dollars per currency. However, no additional purchases took place during the week from March 31 to April 6.
The company raised $ 7.69 billion to finance coding acquisitions through various shares offers during the quarter.
However, the strategy has warned that the business analysis software works did not generate a positive cash flow and may struggle to meet financial obligations, including $ 8.22 billion of owed debt and $ 146.2 million of annual profits on favorite stocks.
In addition, the strategy faces tax obligations of about 2.28 billion dollars related to unrealized gains on Bitcoin’s holdings, although the postponed tax assets such as net operational losses are partially compensated.
The continuous decrease in the value of Bitcoin may force the company to increase assessment allowances, which affects its financial stability.
MSTR share price analysis
It is not surprising, that unrealized losses have been affected by the MSTR stock. As of the time of the press, the shares were trading at $ 279, a decrease of approximately 5 % a day. Year to date, strategy shares decreased about 7 %.
It should be noted that the stock has also been affected by selling the broader market amid the uncertainty surrounding President Donald Trump’s definitions.
Distinctive image via Shutterstock
