Strategy (formerly MicroStrategy) began purchasing Bitcoin in 2020 under then-founder and CEO Michael Saylor. What started as a small buying trend quickly exploded over the years, and the company now holds the title of public company with the largest Bitcoin holdings in the world. The company has now spent tens of billions of dollars buying Bitcoin, but with prices falling, its holdings are now at a loss.
Strategy’s Bitcoin Bet Posts Billions of Dollars in Losses
Strategy recently filed its Form 8-K for the first quarter of 2026, showing significant losses for the company and its Bitcoin strategy. According to the form, the company’s Bitcoin holdings fell by more than $14 billion in the first quarter alone, reflecting the decline in the price of BTC during this period.
Despite Bitcoin prices and holdings moving underwater, Strategy continued to buy Bitcoin. During the first quarter of this year, the company made a total of 12 different purchases of BTC, with the lowest purchase amounting to $40 million.
By the time the company completed its work in the first quarter, it had spent more than $7 billion buying BTC in just three months, adding more than 89,000 BTC to its already massive reserves. This brings the company’s total spending on BTC purchases over the years to over $57 billion.
Despite documentation showing billions of dollars in losses, the company soon bought back Bitcoin. On April 6, the company reported purchasing another 4,871 BTC at an average price of $67,718. This cost Compass $329.9 million, bringing its total BTC spend to date to $58.02 billion.
Bitcoin prices have since rebounded from the first quarter lows and are trending higher again, but the company is still stuck. The current cost basis is $75,644 per coin, so the company’s BTC holdings will remain underwater as long as the BTC price remains below this level.
The company’s stock price has followed Bitcoin’s downward trajectory. At the time of this report, MSTR stock is hovering around $163, down more than 50% from its 2025 high above $400. As for BTC holdings, Saylor previously stated that the company has no plans to sell BTC and in fact will continue to accumulate BTC for the foreseeable future.
Featured image by Dall.E, chart by TradingView.com
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