MicroStrategy, now operating under the name Strategy, has reaffirmed its commitment to Bitcoin by announcing a substantial $21 billion capital raise aimed at expanding its cryptocurrency holdings. This move comes despite the company posting a significant net loss of $4.2 billion in the first quarter of 2025, largely attributed to unrealized losses stemming from a decline in Bitcoin's price.
Q1 2025 Financial Highlights
Net Loss: $4.2 billion, or $16.49 per share, compared to a loss of $0.31 per share in Q1 2024.
Revenue: $111.1 million, marking a 3.6% decrease year-over-year.
Operating Expenses: Approximately $6.0 billion, with $5.9 billion attributed to unrealized losses on digital assets due to the adoption of fair value accounting.
Bitcoin Holdings and Investment Strategy
Current Holdings: 553,555 bitcoins, acquired at a total cost of $37.9 billion, averaging $68,459 per bitcoin.
Recent Acquisitions: 301,335 bitcoins added during Q1 2025.
Capital Raise: $21 billion through an at-the-market (ATM) common stock equity offering.
Performance Metrics:
BTC Yield: 13.7% year-to-date, with a Q1 yield of 11.0%.
BTC Gain: 61,497 bitcoins year-to-date.
BTC $ Gain: $5.8 billion year-to-date.
Market Context and Outlook
Despite the Q1 losses, Strategy remains optimistic about its Bitcoin-centric approach. The company has increased its 2025 targets, aiming for a 25% BTC Yield and a $15 billion BTC $ Gain. As of late April 2025, Bitcoin's price has rebounded to approximately $97,300, potentially translating to a fair value gain of around $8.0 billion for Strategy in Q2.
While Strategy's aggressive investment in Bitcoin has led to significant short-term losses, the company continues to pursue its long-term vision of leveraging cryptocurrency as a primary treasury asset. Investors and market analysts will be closely monitoring how this strategy unfolds amid the volatile nature$BTC
of the cryptocurrency market.
