Strategy Reports Q1 Loss, Increases Bitcoin Targets Amid Continued BTC Acquisitions
Strategy (MSTR) reported a first-quarter 2025 loss of $16.49 per share, impacted by a $5.9 billion writedown on its Bitcoin (BTC) holdings after a significant drop in the cryptocurrency’s price during the first three months of the year.
Despite the loss, led by Executive Chairman Michael Saylor, the company remains committed to its Bitcoin acquisition strategy. After nearly exhausting its previous $21 billion common stock offering with last week’s BTC purchases, Strategy unveiled a new $21 billion at-the-market offering to continue building its BTC stack.
In addition to its Bitcoin strategy, the company’s software business saw a slight dip in revenue, falling 3.6% to $111.1 million from $115.2 million in the same period last year. However, subscription services revenue rose to $37.1 million, up from $23.0 million in the prior year.
On the Bitcoin front, Strategy achieved a 11.0% “BTC Yield” for the quarter, reflecting growth in its Bitcoin holdings relative to its diluted shares outstanding. The company’s “BTC $ Gain” for the period amounted to approximately $4.1 billion, bringing it closer to its annual target of $10 billion in BTC gains.
The company has now raised its long-term targets, increasing its BTC Yield goal to 25% from 15%, and its BTC $ Gain target to $15 billion, up from the previous $10 billion.
Despite the challenges faced in Q1, shares of Strategy are up 27% year-to-date. Bitcoin is currently trading around $96,547, showing a 2.5% increase over the last 24 hours.
Including recent purchases in April, Strategy now holds 553,555 Bitcoin, acquired at an average price of $68,459 each, totaling $37.9 billion. The current value of this stack is estimated at $53 billion.
“Our capital markets strategy continues to drive the growth of our Bitcoin holdings while maximizing shareholder value. With over 70 public companies worldwide adopting Bitcoin as part of their treasury strategy, we are proud to lead the way in this space,” said Phong Le, president and CEO of Strategy.
Shares saw a slight uptick in after-hours trading.
