Strategy, the corporate bitcoin treasury firm formerly known as Microstrategy, revealed plans for a $21 billion at-the-market (ATM) common stock offering to acquire additional bitcoin ( BTC), even as it reported a first-quarter net loss of $4.2 billion, or $16.49 per diluted share.
Strategy Wants More Bitcoin
The company’s net loss included a $5.9 billion unrealized loss on its bitcoin holdings under new fair value accounting rules adopted in 2025. Despite this, Strategy (Nasdaq: MSTR) emphasized progress in its bitcoin strategy, achieving a 13.7% year-to-date “ BTCYield” and a $5.8 billion “ BTC Gain.” It holds 553,555 bitcoin, acquired at an average cost of $68,459 each, and raised its 2025 BTC Yield target from 15% to 25%.
CEO Phong Le highlighted the $21 billion ATM offering’s role in adding 301,335 bitcoin to its balance sheet while boosting its stock price by 50% during the quarter.
“With over 70 public companies worldwide now adopting a Bitcoin treasury standard, we are proud to be at the forefront in pioneering this space,” Le said. Strategy CFO Andrew Kang noted the adoption of fair value accounting lifted retained earnings by $12.7 billion but acknowledged Q1’s unrealized loss due to Bitcoin’s quarter-end price of $82,445.
Strategy raised $7.7 billion in net proceeds during Q1 through stock sales, convertible notes, and preferred stock offerings. It also increased authorized shares of Class A common stock to 10.3 billion to facilitate equity raises.
The firm’s operating expenses surged 1,976% year-over-year to $6 billion, driven by bitcoin-related accounting changes. Meanwhile, Strategy’s software revenue fell 3.6% year-over-year to $111.1 million, though subscription services grew 61.6%. Cash reserves rose to $60.3 million, up $22.2 million from December 2024, the earnings report discloses.
The company’s Q1 2025 financial results cautioned that bitcoin price volatility, regulatory shifts, and liquidity risks could impact future results. It holds bitcoin worth $43.5 billion at quarter-end, with a current market value of approximately $96,619 per bitcoin as of Thursday, May 1, 2025.
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