Strategy buys $330 million worth of BTC as Q1 unrealized loss hits $14.46 billion

• Strategy purchased 4,781 BTC for $330 million last week, boosting its total holdings to 766,970 BTC.
• The purchase was sponsored through the sale of its STRC and MSTR stock between March 30 and April 5.
• Strategy disclosed $14.46 billion in unrealized losses from its cryptocurrency holdings in Q1.

Strategy (MSTR) purchased 4,781 BTC for approximately $330 million last week, according to a Form 8-K filing with the Securities and Exchange Commission (SEC) on Monday.

The latest acquisition, executed at an average price of $67,718, brings the firm's total digital asset holdings to 766,970 BTC, acquired at an aggregate price of $58 billion. The purchase follows a brief pause in the prior week, breaking the company's streak of consistent weekly acquisitions.

Strategy fuels Bitcoin acquisition via share sales

Strategy's recent purchase came from a combined sale of its Series A Perpetual Stretch Preferred Stock (STRC) and Class A Common Stock (MSTR) between March 30 and April 5. The acquisition was funded through its latest $44 billion at-the-market (ATM) program across its common and preferred shares.

Strategy also disclosed a $14.46 billion unrealized loss on its digital asset holdings for Q1, reflecting a decline in the market value of its Bitcoin holdings below their purchase cost.

Despite the paper loss, Strategy reported a $2.42 billion deferred tax benefit, representing potential tax relief tied to the decline in asset values. As of quarter-end, the firm's digital assets were carried at $51.65 billion on its balance sheet.

Strategy also recognized a $1.73 billion deferred tax asset related to these unrealized losses. However, the company fully offset it with an equivalent valuation allowance, indicating that it does not currently expect to realize those tax benefits.

In a report last week, Glassnode stated that Strategy is one of the few public Bitcoin treasuries still acquiring the top crypto. This followed a 15,000 BTC sale by Marathon Digital, signaling a decline in the corporate treasury model.

MSTR and Bitcoin are up 4% and 3%, respectively, at the time of publication on Monday.