Strategy reported a first-quarter 2025 loss of $4.2 billion or $16.49 per share due to a decline in the price of bitcoin during the quarter. Despite this loss, the company announced a new $21 billion at-the-market common stock equity offering to fund additional Bitcoin purchases, demonstrating its unwavering commitment to its Bitcoin acquisition strategy.
Bitcoin Holdings Continue to Grow
Including April purchases, Strategy now holds 553,555 bitcoin acquired for $37.9 billion at an average price of $68,459 per bitcoin. At the current price of approximately $96,500, this holdings are worth roughly $53 billion, representing a significant unrealized gain.
According to data from SaylorTracker, Strategy maintains its position as the largest corporate Bitcoin holder globally. The recent Bitcoin price movement above $97,000 has pushed Strategy’s holdings well into profitable territory despite recent market volatility stemming from trade tariff announcements.
Also Read: Strategy Acquires 15,355 Bitcoin for $1.42 Billion as Bitcoin Price Surges Past $95,000
Financial Performance and Strategy
During the quarter, Strategy achieved an 11.0% “BTC Yield,” which reflects growth in bitcoin holdings relative to diluted shares outstanding. The “BTC $ Gain” for the quarter was approximately $4.1 billion, moving the company closer to its target of a $10 billion gain for the year.
Strategy’s Q1 report outlines a 13.7% BTC yield year-to-date and a $5.8 billion BTC dollar gain, meeting 58% of its annual target within the first four months of 2025. Based on this performance, the company has raised its long-term target for BTC Yield to 25% from 15% and for BTC $ Gain to $15 billion from $10 billion.
Turning to its core software business, revenue for the quarter fell 3.6% to $111.1 million from $115.2 million in the same period last year. Subscription services revenue came in at $37.1 million, compared with $23.0 million in the prior year.
Executive Statements
“We successfully executed our record $21 billion ATM, adding 301,335 BTC while achieving a 50% surge in our share price,” said CEO Phong Le. “Our capital markets strategy continues to grow our Bitcoin holdings while delivering superior shareholder value. With over 70 public companies worldwide now adopting a Bitcoin treasury standard, we are proud to be at the forefront in pioneering this space,” he added in a statement.
Le emphasized Strategy’s role in shaping the emerging Bitcoin Treasury Standard, which has now been adopted by over 70 public companies worldwide.
Accounting Changes and Market Performance
Notably, Strategy also adopted fair value accounting for its BTC holdings this quarter, contributing to a $12.7 billion uplift in retained earnings. Despite the Q1 markdown from BTC’s end-quarter price of $82,445, the company remains structurally bullish and fundamentally aggressive in its strategy to accumulate more BTC regardless of short-term volatility.
Shares of the company are trading 27% higher year-to-date, while Bitcoin is trading around $96,550, approximately 2.5% higher over the past 24 hours. Strategy shares were marginally higher in after-hours trading following the announcement.
Market Impact and Future Outlook
Looking forward, macroeconomic tailwinds could further amplify Bitcoin’s bullish momentum. With the U.S. labor market weakening and inflation remaining persistent, expectations for a Federal Reserve rate adjustment in Q2 have intensified. According to the CME Group’s FedWatch Tool, market watchers price in an 87% chance of a Fed rate pause in May 2025.
Michael Saylor’s renewed $21B buy plan aligns with the recent ETF inflow spree, reflecting strong institutional conviction in BTC’s long-term potential. Analysts now view corporate and ETF-driven accumulation as critical support pillars that may offset macro uncertainty in Q2.
Adding to the bullish narrative, the Arizona state legislature recently passed a bill establishing the first official cryptocurrency reserves earlier this week. As more firms and sovereign states mirror Strategy’s BTC treasury blueprint, Bitcoin is increasingly viewed as a balance sheet asset and hedge against monetary dilution.
If current momentum holds, Bitcoin price may enter the price discovery phase above $110,000 as Q2 2025 unfolds.
This move by Strategy, under the leadership of Executive Chairman Michael Saylor, further cements the company’s reputation as a pioneer in corporate Bitcoin adoption, even as it faces quarterly losses due to Bitcoin’s price volatility. With its aggressive acquisition strategy and increased targets, Strategy continues to bet heavily on Bitcoin’s long-term value proposition as both an investment asset and a treasury reserve.
Want real-time updates on Bitcoin, Ethereum, and blockchain trends? Crypto News Today delivers breaking crypto news, expert insights, and price movements to keep you informed.
