Strategy adds $330M BTC as paper losses top $14.5B in Q1

Michael Saylor’s Strategy, the world’s largest publicly listed holder of Bitcoin, resumed buying BTC last week after reporting no purchases in the final week of March.

Strategy acquired 4,871 Bitcoin (BTC) for $329.9 million last week, according to an 8-K filing with the US Securities and Exchange Commission on Monday.

The purchases were made at an average price of $67,718 per coin, below the company’s overall average acquisition price of $75,644. The new acquisitions bring Strategy’s holdings to 766,970 BTC, acquired for a total cost of around $58 billion.

Source: SEC

In addition to the purchase update, Strategy also reported its first-quarter financial results, including a $14.46 billion unrealized loss on digital assets and a $2.42 billion deferred tax benefit.

Deferred tax asset offset by valuation allowance as bitcoin trades below cost basis

Strategy said its Bitcoin holdings continue to trade below their cost basis, resulting in the recognition of a deferred tax asset tied to unrealized losses on its digital assets.

As of March 31, the company recorded a $1.73 billion deferred tax asset related to those unrealized losses, which was offset by a corresponding $1.73 billion valuation allowance against the amount.

Source: SEC

“Because the fair value of Strategy’s Bitcoin holdings is below its cost basis, Strategy expects to establish an additional valuation allowance of $0.5 billion against these deferred tax assets,” the company said.

Strategy saw Bitcoin fall below its average purchase price in early February, marking the first time since late 2023 that BTC traded below its cost basis.

Related: 80% of Strategy's ‘Stretch’ buyers are mom-and-pop investors

Despite the decline, the company has continued accumulating Bitcoin, buying roughly 54,000 BTC since Feb. 2. Strategy was especially aggressive in March, making some of its largest weekly purchases on record during the month, with monthly acquisitions netting 41,362 BTC.

Strategy’s total Bitcoin purchases in the first quarter of 2026 reached 89,316 BTC, with an aggregate spend of approximately $6.3 billion.

$21 billion offering of STRC and a new $21 billion MSTR offering

Strategy mentioned that the company is updating its at-the-market (ATM) program, including a new $21 billion offering of Stretch (STRC) stock and a new $21 billion offering of Common A (MSTR) stock. The company also terminated its prior Strike (STRK) stock offering and launched a new $2.1 billion STRK stock offering.

The amounts available for STRC and MSTR stock reflect the total remaining capacity under both the existing programs and the newly added offerings. Sales under the STRC and MSTR increases may begin once the existing capacity is substantially used, the company said.

Source: SEC

During March 30–31, Strategy sold approximately 2.28 million shares of STRC and 582,550 shares of MSTR, generating about $299.3 million in net proceeds. From April 1–5, the company sold an additional 1 million shares of STRC and 593,294 shares of MSTR, raising roughly $174.6 million.

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