#SaylorBTCPurchase
Strategy: Bitcoin Dominance, Losses, and Ambitions
Despite a 13.7% return on its Bitcoin holdings, Strategy fell short of analysts’ expectations. In Q1 2025, the company reported $5.8 billion in BTC-related profits, yet posted a net loss of $4.2 billion ($16.49 per share) — far below Wall Street’s forecast of just a $0.11 loss per share.
CFO Andrew Kang announced higher 2025 targets: Bitcoin portfolio returns are now aimed at 25% (up from 15%), with projected BTC-related profits raised from $10 billion to $15 billion.
Q1 Financial Highlights:
— Revenue: $111.1M (down 3.6% YoY)
— Operating expenses: $6B (+2000% YoY), including $5.9B in unrealized Bitcoin losses
— BTC held: 553,555 BTC (2.63% of total supply), worth approx. $53.38B
The firm also announced a new $21B stock offering to fund additional Bitcoin purchases, as part of its “21/21” plan to raise $42B and match that in future BTC profits.
Despite short-term losses, MSTR stock closed on May 2 at $399.51, reflecting strong year-to-date growth of over 31%.
Fun fact: Strategy is the world’s largest institutional Bitcoin holder.
What’s your take on this bold approach? Can they hit their 2025 targets?
AMAGE