MicroStrategy Inc. (trading under ticker MSTR), a business intelligence firm known for its significant Bitcoin holdings, has reaffirmed its long-term commitment to Bitcoin by announcing a new $21 billion at-the-market (ATM) stock offering. This move comes despite a reported first-quarter loss of $4.2 billion, largely attributed to a writedown on its Bitcoin assets due to price fluctuations earlier this year.
Q1 Financial Results Highlight Strategic Focus
For Q1 2025, MicroStrategy posted a net loss of $16.49 per share, driven by a $5.9 billion impairment charge on its Bitcoin treasury. While the company’s software revenue saw a 3.6% year-over-year decline—dropping to $111.1 million from $115.2 million—subscription revenue rose significantly to $37.1 million, up from $23 million in Q1 2024.
Despite the decline in software revenue, MicroStrategy's Executive Chairman Michael Saylor and President Phong Le remain focused on the firm’s unique dual approach—leveraging enterprise software while maintaining an aggressive Bitcoin accumulation strategy.
Bitcoin Holdings Rise to Over 553,000 BTC
As of the latest update, MicroStrategy holds 553,555 BTC, acquired for a cumulative cost of $37.9 billion at an average price of approximately $68,459 per BTC. At current market value (~$96,869 per BTC), the company’s Bitcoin holdings are valued around $53 billion, marking a significant unrealized gain.
To support further Bitcoin purchases, MicroStrategy has launched another $21 billion equity offering. This follows the successful utilization of a previous offering of the same size, which helped increase its holdings from 528,185 BTC to the current level.
Raising Targets: BTC Yield and Gain Projections Updated
In a forward-looking update, MicroStrategy raised its Bitcoin performance benchmarks:
BTC Yield Target increased from 15% to 25%, indicating the company's goal to grow its BTC holdings faster relative to share dilution.BTC $ Gain Target has been raised from $10 billion to $15 billion, reflecting rising confidence in long-term market appreciation.
Despite market volatility in early 2025, the company remains firm in its strategy, with leadership expressing optimism about Bitcoin’s future role in corporate treasury management.
Leadership Remarks and Market Impact
“Our capital markets strategy continues to grow our Bitcoin holdings while delivering superior shareholder value,” said President and CEO Phong Le in an official statement. “With over 70 public companies now adopting a Bitcoin treasury standard, we are proud to be at the forefront in pioneering this space.”
Shares of MicroStrategy are up 27% year-to-date, and the stock showed modest gains in after-hours trading following the earnings release.
Innovation Meets Digital Asset Strategy
While MicroStrategy’s bold strategy remains controversial in some investment circles, it underscores a growing trend among institutional players incorporating digital assets into long-term financial planning. The company’s transparent reporting, consistent accumulation, and proactive capital market initiatives position it as a key case study in corporate crypto adoption.
Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any assets. Readers should conduct their own research and consult with financial professionals before making investment decisions.
