Strategy’s Q1 Loss Hits $12.54 Billion as BTC Falls to $68,000
Strategy posted a Q1 net loss of $12.54 billion as Bitcoin’s price dropped from $87,000 to $68,000, leading to a $14.46 billion unrealized loss on its holdings. The firm held 818,334 BTC at an average cost of $75,537, generated $124.3 million in revenue and recorded EPS of -$38.25, undershooting estimates of -$18.98.
1. Q1 Loss Details
Strategy reported a net loss of $12.54 billion and an operating loss of $14.47 billion for the quarter, driven largely by an unrealized loss on digital assets. Earnings per share came in at -$38.25, significantly wider than the prior-year EPS of -$16.49.
2. Bitcoin Price Decline
Bitcoin’s market price fell from $87,000 on January 1 to $68,000 by March 31, triggering a $14.46 billion unrealized loss on the company’s digital asset holdings during the period.
3. Treasury and Liquidity
As of quarter end, Strategy held 818,334 BTC at an average cost of $75,537 and maintained $2.25 billion in cash, enough to cover 18 months of dividend payments. Total revenue rose 11.9% year-over-year to $124.3 million but fell slightly short of consensus expectations.