Despite recently recording a loss of 4.2 billion USD in Q1/2025 due to falling Bitcoin prices, Strategy – a software company known for its Bitcoin investment strategy – remains determined to expand its ambitions. With plans to raise an additional 21 billion USD to continue accumulating BTC, Strategy is drawing curiosity from observers regarding its long-term strategy and resilience. Below is a detailed summary of the company's financial situation and direction.
Q1/2025 Business Results: Significant Losses But Still Positive
The Q1/2025 financial report shows #Strategy a loss of 4.2 billion USD, marking an unsuccessful quarter due to a sharp decline in Bitcoin prices. The main damage comes from a loss of 5.91 billion USD on the BTC held. Nevertheless, the company still spent 7.66 billion USD to purchase an additional 80,715 Bitcoin in this quarter. Total revenue reached 111.1 million USD, down 3.6% from 115 million USD in Q1/2024, but subscription service revenue increased by 61%, reaching 37.1 million USD. The current cash balance is 60.3 million USD.
21 Billion USD Fundraising Plan: Continuing Investment in Bitcoin
Strategy plans to launch a new fundraising program worth 21 billion USD, following a similar capital raising round from late 2024, which has been fully utilized to purchase Bitcoin. This move is part of the company's long-term strategy, despite recent fluctuations. Strategy reported an investment return $BTC of 13.7% year-to-date, while raising the BTC profit forecast for the entire year of 2025 from 15% to 25%, expecting actual profits to increase from 10 billion USD to 15 billion USD.
Stock Recovery and Positive Future
After reaching an ATH peak in early December 2024, the stock price #MSTR of Strategy experienced some adjustments but showed clear signs of recovery in April 2025, alongside the rising trend of Bitcoin. This reflects investor confidence in the company's long-term investment strategy.
Impact Analysis
Although suffering significant losses in Q1, the decision to raise an additional 21 billion USD shows that Strategy is undeterred by Bitcoin price volatility. Continuing to buy BTC in large quantities could strengthen the company’s position among cryptocurrency investment institutions, but also poses risks if the market continues to decline. The recovery of MSTR stock is a positive signal, but investors need to closely monitor to assess the effectiveness of the new plan.
Conclusion
With the 21 billion USD fundraising, Strategy is making a significant bet on the future of Bitcoin, despite challenges from Q1/2025. Confidence in profit projections and signs of stock recovery indicate that the company still attracts investors. Can Strategy turn challenges into opportunities? The financial community needs to closely monitor this bold strategy to grasp the trends!