Strategy Ends Q1 Without Buying New Bitcoin, As $6.1bn Loss Raises Eyebrows

Strategy (MSTR) closed the first quarter of 2025 with no new Bitcoin (BTC) purchases for the first time in over a year, raising questions about the company’s evolving crypto strategy.

The decision comes amid a broader market correction. It follows the filing of a new Form S-4 (File No. 415), which outlines ongoing corporate restructuring and share transactions.

The firm, which rebranded as ‘Strategy’ from MicroStrategy earlier this year, also reported a staggering $6.1billion paper loss on its Bitcoin holdings for Q1.

Charting Strategy’s Bitcoin accumulation plateau

Strategy’s Bitcoin treasury has historically grown in waves, often in conjunction with equity offerings and convertible debt raises.

However, the latest chart shows a marked change. After a parabolic rise in holdings in late 2024, where BTC reserves crossed the 500,000 mark, accumulation has now stalled. According to a report from Strategy, no BTC was accumulated in March. Also, data from Bitbo showed that the last time the institution bought BTC was on 24 February.

This stall in purchases comes just as Bitcoin prices dipped to multi-week lows around $74,000. Historically, Strategy has used such pullbacks as opportunities to accumulate. Its inactivity this time may signal a shift in strategy or concerns around liquidity and dilution optics.

The current holding stands at just over 528,185 BTC, as reflected in the firm’s latest disclosure. With BTC trading near $77,000, the company’s crypto treasury is still valued at more than $39bn, down from highs near $45bn last month.

New shelf registration and deferred issuance

According to the 7 April Form 8-K filing, Strategy has submitted a new Shelf Registration Statement on Form S-4 (File No. 415), enabling it to issue new shares in connection with mergers, acquisitions, or restructuring plans.

While no specific issuance has been announced, the flexibility granted by the S-4 suggests that the firm is positioning for future corporate moves that may or may not be tied to additional BTC purchases.

The filing also clarified that the firm’s ‘at-the-market’ equity program remains in place but has not been activated for Bitcoin acquisition since late Q4 2024. This adds weight to speculation that Strategy may be waiting for clearer macro signals or considering strategic pivots to optimize long-term shareholder value.

$6.1billion paper loss and market response

The firm’s reported $6.1bn unrealized loss is one of its largest single-quarter markdowns since initiating its Bitcoin strategy in 2020. While the company has previously weathered such volatility by emphasizing a long-term accumulation thesis, the market reaction has been more skeptical this time.

Shares of MSTR fell nearly 12% in the first week of April, with analysts citing the absence of new BTC purchases as a possible sentiment driver. This follows months of near-daily inflows, where Strategy consistently signaled confidence in Bitcoin’s trajectory regardless of short-term volatility.

With the company’s BTC now underwater relative to recent highs, critics argue that the lack of purchases at these lower levels undermines its stated strategy of aggressive accumulation.

Strategic pause or calculated timing?

Two schools of thought are forming around Strategy’s current posture. Some believe the company is taking a breath amid market turbulence and corporate filings, allowing it to recalibrate before the next buying wave.

Others suggest the firm is quietly bracing for regulatory pressure or shifting to broader digital asset exposure beyond Bitcoin.

Either way, the break in buying has disrupted a narrative that had, until recently, made MicroStrategy synonymous with institutional BTC accumulation.