- Between March 31 and April 6, 2025, Strategy has paused its Bitcoin purchases.
- Following Trump’s announcement of new US trade tariffs, Bitcoin’s price dropped below $80,000.
- The current Bitcoin holdings for Strategy amount to 528,185 BTC.
Michael Saylor’s company, Strategy, has recently suspended its Bitcoin purchasing, marking a significant departure from its ongoing acquisition trend.
This change coincides with a notable downturn in the crypto markets, triggered by US President Donald Trump’s announcement of a 10% tariff on nearly all imports.
The decision to halt Bitcoin purchases, which was confirmed in a 10-Q filing with the US Securities and Exchange Commission (SEC) on April 7, aligns with a widespread investor hesitance spurred by Trump’s threats to increase tariffs on Chinese imports to 50%.
Strategy’s Bitcoin Holdings: 528,185 BTC
The SEC filing indicated that no Bitcoin purchases were made between March 31 and April 6.
Despite this pause, the company retains 528,185 BTC that it has amassed since adopting a Bitcoin-centric treasury strategy in 2020 under Saylor’s direction.
While the firm did not divest any of its assets during this hiatus, it reported unrealized losses of $5.91 billion on its Bitcoin holdings in the first quarter of 2025.
This significant decline follows Bitcoin’s drop below $80,000, marking a reversal from the post-election rally following Trump’s re-election.
The SEC document did not clarify if the pause would be temporary or a strategic change, but it emphasized that broader market dynamics and geopolitical uncertainties have influenced acquisition strategies.
Trump’s Warning of 50% Tariffs on China
The decision to halt Bitcoin acquisitions by Strategy wasn’t made in isolation.
This pause aligns with market volatility primarily caused by Trump’s tariff strategies, which have destabilized both traditional financial markets and cryptocurrency exchanges.
On April 7, the president tweeted, urging the public to “Be Strong, Courageous, and Patient, and GREATNESS will be the result.”
However, following Trump’s escalation of threats to increase tariffs on Chinese goods from 34% to 50%, investor confidence significantly waned.
This further heightened pressure on global asset prices, leading to substantial capital outflows and a decrease in high-risk assets, including cryptocurrencies.
Concerns Arise Over Strategy’s Unrealized Losses and BTC Treasury Approach
The $5.91 billion in unrealized losses has highlighted the potential risks associated with a Bitcoin-focused corporate treasury model.
While Strategy has consistently promoted Bitcoin as a secure store of value, recent developments have reignited discussions regarding exposure to market volatility.
The company’s unrealized losses from the first quarter underscore how geopolitical shifts—like changes in US trade policy—can directlyaffect balance sheets linked to cryptocurrency investments.
Although Strategy did not comment on future acquisition plans in the SEC filing, the lack of new purchases during a time of heightened market uncertainty suggests a more cautious approach in the immediate future.
Ackman Calls for Tariff Reversal
Billionaire investor Bill Ackman, who has previously supported Trump, criticized the newly imposed tariffs and their detrimental effect on market stability.
On April 7, Ackman tweeted that these policies undermine US negotiating power and should be reversed without delay.
His remarks echo an increasing concern among investors regarding the broader impacts of trade policy on asset markets, especially as both stocks and cryptocurrencies simultaneously face pressure.
Strategy’s decision to pause its Bitcoin buying reflects this trend, suggesting that some companies are re-evaluating aggressive cryptocurrency accumulation strategies amid prevailing macroeconomic challenges.
Whether this pause evolves into a permanent shift in policy will likely depend on Bitcoin’s price reactions to the changing global economic landscape and ongoing political developments.
The article Strategy hits the pause button on Bitcoin after $5.9B loss appeared first on CoinJournal.
Michael Saylor’s company, Strategy, has recently halted its Bitcoin purchases for the first time in a significant stretch, as detailed in their 10-Q filing with the US Securities and Exchange Commission (SEC) on April 7, 2025. This pause occurred between March 31 and April 6, coinciding with a notable downturn in the cryptocurrency market, which saw Bitcoin’s price dip below $80,000 following a major announcement from President Donald Trump regarding new trade tariffs.
The announced tariffs include a 10% duty on nearly all foreign goods, which has caused turmoil not just in crypto markets but across traditional financial markets as well. Beyond the initial tariff, Trump escalated concerns by threatening to increase tariffs on Chinese goods from 34% to an alarming 50% if retaliation continued. This situation heightened investor caution and uncertainty, which has typically resulted in capital outflows and a slump in risk-sensitive assets, including cryptocurrencies.
As a result of these recent developments, Strategy’s Bitcoin holdings remain substantial at 528,185 BTC, which the company has accumulated since adopting a Bitcoin-centric treasury strategy in 2020. Notably, despite pausing acquisitions, Strategy did not liquidate any of its Bitcoin assets during this challenging period. However, the company reported unrealised losses of $5.91 billion on its Bitcoin holdings in the first quarter of 2025, a substantial indicator of the recent decline in value amid the current market volatility.
The SEC filing did not explicitly indicate whether this pause in purchases was a temporary measure or the start of a more significant strategic change for Strategy. Nevertheless, it underscored the degree to which geopolitical uncertainty and market conditions can influence corporate investment strategies linked to digital assets. While Saylor’s firm has outwardly advocated for Bitcoin as a secure store of value, the current situation has reignited discussions around the volatility and risks inherent in a Bitcoin-focused corporate treasury model.
Investor sentiment has soured significantly in light of the tariffs, reflected in remarks from prominent market figures such as billionaire investor Bill Ackman. Ackman, who previously supported Trump, has since criticized the new tariffs, arguing on social media that they undermine US negotiating leverage and should be reversed promptly. His criticism highlights a broader concern in the investment community regarding the influence of trade policies on market stability, especially as both stock and cryptocurrency assets face simultaneous pressures.
Strategy’s decision to pause Bitcoin buying underscores a growing trend where corporations are now reconsidering aggressive acquisition strategies in the face of adverse macroeconomic conditions. This caution may persist as firms evaluate the implications of ongoing geopolitical developments on the financial landscape and their impact on crypto assets like Bitcoin.
The broader context of this pause reflects a moment of introspection for firms heavily invested in Bitcoin, particularly amid shifts in global economic policy and its effects on market dynamics. The possibility of a long-term policy change at Strategy remains uncertain and will likely be influenced by Bitcoin’s price movements in response to the evolving economic landscape and any further political changes. Overall, the developments surrounding Strategy and its current stance on Bitcoin purchasing paint a picture of cautious navigation through a complex and uncertain financial terrain.
