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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Strategy, the world’s largest corporate holder of Bitcoin, has recorded massive unrealized losses amid heightened market volatility but reaffirmed its commitment to continued accumulation.
According to Bloomberg on April 6, Strategy reported approximately $14.5 billion in unrealized losses on its Bitcoin holdings in the first quarter, as Bitcoin prices declined by more than 20%—marking the steepest first-quarter drop since 2018.
The impact was amplified by new accounting standards introduced last year, which require companies to reflect fair value changes in digital assets directly in net income. Despite the losses, the company’s total Bitcoin holdings remained valued at over $50 billion as of the end of the quarter.
Undeterred, Strategy continued to expand its position, purchasing an additional 4,871 Bitcoins for approximately $330 million between April 1 and 5. The average purchase price for this batch was about $67,700, while the company’s overall average acquisition cost stands above $75,000—leaving its holdings currently below cost basis.
Chairman Michael Saylor has also revised the company’s capital-raising strategy. Moving away from heavy reliance on common stock issuance, Strategy is increasingly utilizing preferred shares—specifically “Stretch preferred shares”—to fund further Bitcoin purchases.
The company has outlined a total capital plan of $42 billion, including $21 billion in Class A common stock and $21 billion in perpetual preferred shares. The preferred shares offer a high dividend yield of 11.5% with a reset mechanism designed to maintain a stable $100 par value.
Analysts say this approach aims to minimize shareholder dilution while attracting institutional investors seeking stable, high-yield returns, thereby securing continuous funding for additional Bitcoin accumulation.
알파경제 Kim Jisun Reporter(stockmk2020@alphabiz.co.kr)
