Still, shares rose by nearly 6% through early trading on Monday while bitcoin added 4% to trade above $69,500 per coin
Michael Saylor’s bitcoin-buying company Strategy (MSTR) recorded a $14.5 billion unrealized loss in the first quarter as the decline in bitcoin’s price erased value from the firm’s holdings, the company said in a securities filing on Monday.
Still, shares rose by nearly 6% through early trading on Monday while bitcoin added 4% to trade above $69,500 per coin.
In the company’s latest buying spree, also disclosed on Monday, Strategy bought nearly $330 million worth of bitcoin between April 1 and April 5, further cementing its position as the largest corporate holder of the cryptocurrency.
Since the beginning of the year, bitcoin has shed nearly 20% of its value, denting the nearly $58 billion in the coin that Strategy owns. The pullback from the cryptocurrency’s all-time high last year brought the value of Strategy’s holdings below their average purchase price of above $75,000 by the end of the quarter, according to Bloomberg.
Saylor’s company funded its latest wave of purchases by selling both common stock and “Stretch” preferred shares, according to the regulatory disclosure. Sales of common stock dilute investors, whereas sales of the preferred shares avoid dilution but introduce a fixed obligation, Bloomberg reported.
The company sold nearly $300 million of common and preferred shares between March 30 and March 31 and sold another $175 million between April 1 and April 5, according to regulatory filings.
Strategy is expected to report first quarter earnings on April 30. In the company’s fourth quarter results, Strategy reported an operating loss of $17.4 billion and a net loss of $12.6 billion on the quarter for an operating loss of $5.4 billion and a net loss of $4.2 billion on the year.
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