American software company Strategy (formerly MicroStrategy) announced its Q1 2025 financial report, with both revenue and profits falling short of market expectations. The total revenue for the quarter was $111.1 million, which was not only about 5% below market expectations but also a decline of 3.6% compared to the same period last year. The loss per share reached $16.49, primarily due to the significant drop in Bitcoin prices over the first three months, leading the company to recognize an impairment loss of up to $5.9 billion on its Bitcoin holdings.
Under the leadership of Executive Chairman Michael Saylor, Strategy has shown no signs of slowing down its Bitcoin acquisitions. In last week's latest Bitcoin purchase, the company nearly exhausted the funds raised from the previous $21 billion common stock issuance, and therefore, announced a new $21 billion common stock offering plan at market price while releasing its financial report.
In terms of software business, Strategy's revenue this quarter fell by 3.6% to $111.1 million from $115.2 million in the same period last year, while subscription service revenue grew to $37.1 million, compared to $23 million in the same period last year.
In this quarter, Strategy achieved an 11% Bitcoin Yield (BTC Yield), reflecting the growth of its Bitcoin holdings relative to the diluted shares outstanding. The quarter's Bitcoin Dollar Gain (BTC $ Gain) was about $4.1 billion, bringing the company closer to its annual target of $10 billion in revenue. The company raised its long-term target for BTC Yield from 15% to 25% and increased the target for BTC $ Gain from $10 billion to $15 billion.
Strategy's stock price opened yesterday with a rise of 6% to $403.88, closing at $381.6, but fell to $378.45 in after-hours trading. As of May 1, Strategy has risen about 32% this year. Bitcoin has dropped from its high of $108,000 on January 20 when Trump took office to around $75,000, a decline of 31%, but later returned to about $97,000 during the rise from April to May, with an annual increase of about 3.7%.
As of April 27, Strategy and its subsidiaries hold a total of 553,555 Bitcoins, with an average purchase price of about $68,459. At the current price, these Bitcoins are valued at approximately $53.7 billion.
Strategy's President and CEO Phong Le stated in a statement:
"Our capital market strategy continues to expand our Bitcoin holdings while creating exceptional value for shareholders. Today, more than 70 publicly traded companies worldwide have adopted Bitcoin financial management standards, and we are proud to be at the forefront of this pioneering field."
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