Strategy Sees Bitcoin Losses Amidst Market Volatility

Cryptocurrency firm Strategy (MSTR) is facing challenges in securing capital amidst recent market volatility, resulting in no bitcoin additions last week. The company expects a net loss for the first quarter, driven by an unrealized loss of $5.91 billion on its bitcoin holdings, according to CoinDesk. This follows the implementation of new accounting standards that require crypto assets to be marked to market. However, a $1.69 billion tax benefit is anticipated to partially offset this loss. 7.69 billion dollars were raised in total during the quarter through common stock and preferred stock sales. The funds primarily went towards buying bitcoin at prices significantly higher than its current market value of $77,000; however, these holdings have risen to nearly $67,500 on average, showcasing a 14% profit on their initial investment. Despite this success, MSTR shares saw a decline of 9% in early Monday trading and are down by 10% year-to-date, reflecting the volatility of the cryptocurrency market.