#SaylorBTCPurchase In the first quarter of 2025, Strategy reported a net loss of $4.217 billion, or $16.49 per share, amid a decline in Bitcoin price to around $82,445 by the end of March. However, the company completed a $21 billion stock issuance through an 'ATM' mechanism, adding 301,335 new Bitcoin units to its portfolio, which exceeded 553,555 coins, to reaffirm its commitment to a long-term accumulation strategy.

Impact of Fair Value Accounting

The company applied fair value accounting standards for the first time in this quarter, resulting in an unrealized loss of $5.9 billion on digital assets within $6.0 billion in total operating expenses. Thanks to this new accounting method, $12.7 billion was added to retained earnings, strengthening the company's financial position despite operational losses.

Market Movements and Reactions

  • The price of Bitcoin rose again to around $97,300 in early May, giving Strategy unrealized gains estimated at around $8 billion in the second quarter.

    The stock of Strategy (MSTR) jumped nearly 50% during the stock offering, then fell back by 2.3% as investor sentiment varied between optimism and caution regarding dilution risks.

Risks and Challenges

  1. Bitcoin Price Volatility: If the price remains below the portfolio cost (~$68,459), long-term losses may worsen.

    Potential Dilution: Repeated stock issuances may reduce the stakes of existing investors if the price does not rebound quickly.

Strategic Opportunities

  • Leadership in the 'Bitcoin Treasury' Model: More than 70 public companies have adopted this strategy, enhancing Strategy's position as a market leader.

    Integration with ETF Funds: Growth in spot Bitcoin fund flows adds institutional liquidity that may support the price in the future.

❓ Discussion Question:

Do you think the strategy of accumulating Bitcoin through issuing additional shares will achieve sustainable long-term returns, or will it face additional pressures from market volatility and dilution? Share your views with us!

⚠️ Risk Alert:

Trading digital assets involves high risks and may lead to capital loss.