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TLDR
- Strategy reported a 13.7% YTD Bitcoin yield despite missing Wall Street Q1 estimates
- Company plans to raise an additional $21 billion to purchase more Bitcoin
- Strategy currently holds over 550,000 BTC valued at approximately $53 billion
- The firm recorded a $5.9 billion unrealized loss on Bitcoin holdings in Q1
- Average purchase price of Bitcoin is around $68,500, with a target yield increase to 25%
Strategy, formerly known as MicroStrategy, released its first quarter 2025 earnings report, highlighting a 13.7% year-to-date yield on its Bitcoin holdings while missing Wall Street expectations. The Bitcoin-focused company, led by Michael Saylor, continues its aggressive acquisition strategy despite reporting losses.
The firm announced that its Bitcoin yield translated to a gain of more than 61,000 BTC, worth approximately $5.8 billion. These metrics are used internally by Strategy to measure the success of its Bitcoin purchases.
$MSTR announces BTC Yield of 13.7% and BTC $ Gain of $5.8B year-to-date, doubles capital plan to $42B equity and $42B fixed income to purchase bitcoin, and increases BTC Yield target from 15% to 25% and BTC $ Gain target from $10B to $15B for 2025. https://t.co/LgeMEd6Dr5
— Michael Saylor (@saylor) May 1, 2025
Strategy’s Chief Financial Officer Andrew Kang revealed plans to increase the company’s Bitcoin yield target for 2025 to 25%, with a Bitcoin gain target of $15 billion. This comes as the company missed analyst expectations for the quarter.
Revenue fell to $111.1 million, representing a 3.6% decrease compared to the same period last year. This figure missed analyst estimates by about 5%.
The company reported a substantial net loss of $4.2 billion, or $16.49 per diluted share. This loss was much larger than analyst expectations of an 11 cents per share loss and marked a major increase from the $53.1 million loss reported in Q1 2024.
Bitcoin Strategy Continues
Strategy’s operating expenses saw a dramatic jump of nearly 2,000% year-on-year to $6 billion. This increase was primarily due to a $5.9 billion unrealized loss on its Bitcoin holdings during the quarter.
Despite these losses, the company remains committed to its Bitcoin-focused strategy. Strategy announced plans to offer an additional $21 billion worth of stock to finance future Bitcoin purchases.
Shares of Strategy (MSTR) closed May 1 trading up 0.39% to $381.60, with a slight after-hours decline to $378.50. The stock has gained over 31.5% so far in 2025, though it remains below its November peak of more than $470 per share.
Since beginning its Bitcoin purchasing initiative in 2020, Strategy has accumulated more than 550,000 BTC at a cost of nearly $38 billion. This represents an average purchase price of approximately $68,500 per Bitcoin.
As of May 1, Strategy’s Bitcoin treasury is valued at more than $53 billion, making it the largest corporate holder of Bitcoin. Public companies collectively hold upward of $73 billion worth of Bitcoin, with institutional funds holding approximately $128 billion more.
Subscription Growth Amid Losses
While the company faced losses related to Bitcoin’s price movements, not all news was negative. Strategy’s subscription services revenues increased to $37.1 million, representing a 61.6% year-over-year growth.
“With over 70 public companies worldwide now adopting a Bitcoin treasury standard, we are proud to be at the forefront in pioneering this space,” said Phong Le, president and CEO of Strategy, in the earnings statement.
The company has sold around $20.9 billion worth of common shares since establishing its at-the-money equity offering program. Strategy has $128 million in common shares left for issuance and sale under its current program.
In October, Strategy announced plans to raise $42 billion through equity and fixed income sales over a three-year period to purchase more Bitcoin than it could otherwise acquire.
“We successfully executed our record $21 billion common stock ATM, adding 301,335 BTC to our balance sheet while simultaneously achieving a 50% increase in MSTR share price during the same period,” Le added.
Bitcoin was trading at approximately $96,600 as of the report, up 2.1% over the previous 24 hours. The cryptocurrency has gained 13% over the past month after experiencing a downturn from late January through early April.
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