The strategy raised another $21 billion to acquire Bitcoin, but suffered significant losses in the first quarter due to the fall in the price of BTC
The company increased its BTC return target from 15% to 25%, as well as its BTC growth target from $10 billion to $15 billion.
James Van Straten, Helen Brown | Edited by Stephen Alpher Updated May 2, 2025, 1:20 pm Published May 1, 2025, 8:27 pm
Key points:
- Strategy reported a loss of $4.2 billion, or $16.49 per share, for the first quarter as a result of the drop in the price of bitcoin.
- The company announced a new $21 billion common stock offering.
- At the end of the quarter, the company held 528,185 BTC, and that figure has since increased to 553,555.
Disclaimer: The analyst who co-authored this article owns shares of Strategy (MSTR).
Strategy (MSTR) posted a loss of $16.49 for the first quarter of 2025 after writing down $5.9 billion in bitcoin (BTC) holdings as a result of the severe decline in BTC price in the first three months of the year.
However, the company, led by Chairman Michael Saylor, shows no signs of slowing down in its Bitcoin acquisitions. Having spent almost all of its previous $21 billion in common stock on recent BTC purchases last week, the company also announced a new $21 billion offering.
In software, revenue for the quarter fell 3.6% to $111.1 million from $115.2 million last year. Subscription services revenue for the quarter was $37.1 million, down from $23.0 million a year earlier.
Strategy achieved an 11.0% “BTC Yield” during the quarter, reflecting the increase in Bitcoin stock relative to the diluted shares outstanding. “BTC $ Gain” for the quarter was approximately $4.1 billion, moving the company closer to its $10 billion full-year profit target.
The company raised its long-term BTC return target from 15% to 25% and its BTC growth target from $10 billion to $15 billion.
The company's shares are up 27% since the start of the year. Bitcoin is trading around $96,547, up 2.5% in the last 24 hours.
Including the April purchases, the company holds 553,555 bitcoins, purchased for $37.9 billion, or $68,459 per unit. That stock is valued at about $53 billion at the current price.
“Our capital markets strategy continues to grow our Bitcoin holdings while delivering excellent value to shareholders. With over 70 public companies worldwide now adopting Bitcoin as a treasury standard, we are proud to be a pioneer in this space,” said Phong Le, president and CEO of Strategy.
Shares are up slightly in after-hours trading.
