Strategy Buys 4,871 BTC, Reports $14.5B Unrealized Losses
Strategy acquired 4,871 BTC for $330M, reporting $14.5B in unrealized losses for Q1.Summary
Michael Saylor's company, Strategy, purchased 4,871 Bitcoin (BTC) for $329.9 million last week, bringing its total holdings to 766,970 BTC acquired at an average price of $75,644 per coin. Despite this acquisition, the company reported first-quarter financial results showing a $14.46 billion unrealized loss on its digital assets. This loss is due to Bitcoin trading below its cost basis, leading Strategy to establish a $1.73 billion deferred tax asset, which was fully offset by a valuation allowance. The company anticipates needing an additional $0.5 billion valuation allowance. Strategy has continued to accumulate Bitcoin, buying approximately 89,316 BTC in the first quarter for about $6.3 billion, even as the price fell below its average purchase price. Additionally, Strategy is updating its at-the-market program with new stock offerings totaling $42 billion and has recently sold shares generating significant proceeds.
(Source：Cointelegraph)