%Strategy (NASDAQ: $MSTR) is warning that it will likely report a $5.91 billion U.S. first-quarter loss on its %Bitcoin (CRYPTO: $BTC) holdings.
Strategy, formerly known as MicroStrategy, is the largest corporate holder of Bitcoin in the world with 528,185 digital tokens on its balance sheet.
The average purchase cost of Strategy’s Bitcoin holdings is $67,500 U.S. versus the current price of $79,000 U.S.
In a statement, Strategy emphasized that the sizable loss is unrealized, or on paper only, and that it has no intention of selling any of its Bitcoin stake.
The company also noted that a $1.69 billion U.S. tax benefit is expected to partially offset the Q1 loss.
Strategy raised a total of $7.69 billion U.S. during this year’s first quarter, $4.4 billion U.S. of which was from common stock sales.
Almost all those funds were used to purchase Bitcoin at far higher prices than the current $79,000 U.S.
Currently, Strategy is only up a little more than 10% on its Bitcoin holdings.
Strategy’s stock is down 11% so far this year and trading at $268.14 U.S. per share.
