Michael Saylor’s company, Strategy, has stepped back from buying Bitcoin as aggressively as it previously was. This comes after speculation about increasing market volatility and a reported $5.91 billion in unrealized Q1 2025 losses. Nonetheless, the company still holds more than 528,000 BTC worth around $35.6 billion.
The stay, experts say, may be an indicator of a careful, communicative approach while the market is still responding to macroeconomic pressures such as inflation and the recently announced tariffs on goods coming from the U.S. A $1.69 billion tax benefit is expected by strategy to offset some of the losses.
These Acquisitions are Unlikely to Happen Until Strategy
On April 7, 2025, Strategy revealed that it had not bought any Bitcoin between March 31 and April 6, even though Bitcoin fell briefly below $87,000 during that time. The firm added that it did not sell any Class A common stock, which it tends to use to finance crypto purchases.
This is a significant digression from Strategy’s long-standing strategy of accumulation, raising questions about its short-term prospects in a shaky market. Analysts attribute the cautious tone to mounting macroeconomic headwinds, including inflation and geopolitical tensions.
Material Marked-to-Market Losses
As of April 7, 2025, Strategy owns 528,185 BTC purchased for a cost of $35.6 billion—an average of $67,458 per Bitcoin. Even after this hefty outlay, the company posted an unrealized loss of $5.91 billion for Q1 2025. But it says it will book a $1.69 billion income tax benefit that might ease the financial pain a bit.
The declines are part of widespread corrections in the market, with Bitcoin currently around $80,000. They won’t bring immediate cash, but experts say some of the tax benefits available to the distressed can provide temporary relief and should have a longer-term impact, depending on how soon and by how much prices return to previous valuations.
Price Movements of Bitcoin
There has been considerable turbulence in the cryptocurrency market in recent months. Then, on April 2, 2025, Bitcoin skyrocketed to $87,000 before crashing back to around $80,000 just days later.
This rapid change in pricing was in the wake of former U.S. President Donald Trump’s announcement of new tariffs, which wreaked havoc in global financial markets and heightened uncertainty.
Analysts say the tariff news compounded fragile conditions in which investors are increasingly doing “risk-off.” These geopolitical developments only add to the heavier weight crypto valuations have, clarifying Bitcoin’s sensitivity to macroeconomic flows.
Long-Term Faith in Bitcoin
Despite the ups and downs of the market and Strategy’s suspension of Bitcoin buy activity, co-founding partner Michael Saylor continues to stand by Bitcoin.
“Bitcoin is at its most volatile because it is at its most useful,”
He wrote on social media platform X, a testament to his conviction that Bitcoin’s inherent value is unaffected by price fluctuation. V” In even more bad news, the “C” in the “V” wave: Saylor retweeted,
“Bitcoin is the source of strength in a world of concealed threats.”
Bitcoin Price Predictions
| Date | Predicted Price | Percentage Change |
| April 15, 2025 | $79,510.80 | -0.06% |
| April 30, 2025 | $79,755.63 | +0.40% |
| December 31, 2025 | $101,383.26 | +26.00% |
Bitcoin’s price projections spread among analysts. Others predict a slump to the $76,000–$78,000 area by the end of April 2025, followed by a slide to $52,000–$56,000 by summer due to economic pressures and trade tensions. On the other hand, more bullish analysts forecast Bitcoin hitting $180,000-$200,000 by the end of 2025, fueled by limited supply and increasing institutional demand.
Conclusion
As markets equivalencies on Monday against an ongoing 10% market freeze, Strategy ceased its investiture of Bitcoin, both resulting in marked theoretical losses affecting accounts that were “long” and preventing any new players from joining the market, though transposing initial January 2024-maturing data banks after this time will.
Still, Michael Saylor’s steadfast faith in Bitcoin reflects their conviction, and he made the comparison that there was only one way to lose on gold, and that was on fiat. Investors and market participants alike will follow these developments and contemplate their potential impact as the cryptocurrency market remains in flux.
Disclaimer: The predictions should not sound like financial advice and are based on current market analyses, which can evolve with market dynamics.
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Frequently Asked Questions
1. Bited: Why did Strategy halt the purchase of Bitcoin this week?
Strategy stopped buying due to high market volatility and an unrealized loss of $5.91B after previously aggressively buying and despite Bitcoin dipping below $87,000.
2. How much Bitcoin is Strategy currently holding?
The strategy has since acquired 528,185 BTC for a total cost of $35.6 billion at an average of $67,458 per coin, all made without selling a single Class A share as of April 7, 2025.
3. What was the financial impact reported by Strategy in the first quarter, Q1 2025?
The firm reported a $5.91 billion unrealized loss but is expecting a $1.69 billion tax benefit that will offset some of that impact.
4. What led to the recent Bitcoin price dump?
After former President Trump’s $87K to $80K tariff announcement, Bitcoin plummeted to $80K, inducing fear and sentiment across global financial markets.
Glossary of Key Terms
1. Bitcoin (BTC)
Bitcoin is a decentralized digital currency that lacks a centralized bank, operating on blockchain technology. Strategy: has dynamic allocation to BTC as a long-term store of value.
2. Unrealized Loss
“Paper loss” An unrealized loss, meaning the decline in the value of an asset that has not yet been sold. Strategy reflected an unrealized loss of $5.91B on its Bitcoin investment in Q1 2025.
3. Market Volatility
Entails fast and unpredictable fluctuations in asset prices. As Global Economic Events Moved Bitcoin’s Price from $87K to $80K in Less than 20 minutes,
4. SEC Filing
A legal filing with the U.S. Securities and Exchange Commission. The filing by Strategy revealed its Bitcoin holdings and that it had made no purchases during the week in question.
5. Class A Common Stock
Specific voting rights shares are often used for raising money. Strategy usually sells Class A stock to fund its Bitcoin purchases but did not do so during this reporting period.
6. Tax Benefit
A tax benefit that lowers taxable income. The strategy will realize a $1.69B tax benefit from the reported losses, providing some financial relief despite unrealized losses.
7. Acquisition Cost
The total consideration paid in exchange for obtaining an asset. Strategy’s US dollar cost averaging in Bitcoin has put it at an acquisition cost of $35.6 billion, with an average purchase price of $67,458 per BTC.
8. Tariffs
Tariffs are taxes on imported goods; former President Trump’s new tariff scheme set off wider market jitters, adding to the reasons Bitcoin plunged in price in early April 2025.
