Strategy (formerly MicroStrategy) reported a $4.2 billion net loss for the first quarter of 2025, largely attributed to the volatility in Bitcoin’s market price.
In its Q1 earnings report, Strategy revealed that it made an unrealized loss of $5.9 billion on its Bitcoin holdings due to a drop in the market price during the first quarter.
Undeterred, the firm has unveiled plans to raise another $21 billion to buy more of the digital asset.
Bitcoin losses recorded amid accounting changes
The loss contributed to an overall net loss of $4.2 billion for the period. However, Strategy also highlighted that the implementation of a new accounting standard, ASU 2023-08, allowed it to reflect the fair market value of its Bitcoin holdings on its balance sheet.
The initial result of this standard implementation was a one-time increase of $12.7 billion in retained earnings at the beginning of the year, after which they recorded losses month on month.
Despite the reported loss, Strategy insists the accounting update gives a more accurate view of its financial position and aligns its reporting with market realities. The company had long advocated for Bitcoin fair value reporting and now benefits from a framework that recognizes unrealized gains and losses in real-time.
Strategy doubles down on Bitcoin
As of March 31, 2025, Strategy held approximately 528,185 Bitcoins acquired at an average price of $67,457. The market price of Bitcoin at quarter-end stood at $82,445, bringing the market value of its holdings to $43.5 billion.
Since then, the company has acquired an additional 25,370 Bitcoins, bringing total holdings to 553,555 Bitcoins as of April 28, 2025.
Strategy also announced a $21 billion fundraising initiative, which is reportedly one of the largest of its kind, and it will take the form of an at-the-market (ATM) common stock equity offering. The firm aims to use the proceeds to purchase up to 301,335 more Bitcoins, significantly expanding its position and reinforcing its status as the largest publicly traded corporate holder of Bitcoin.
The company is maintaining its bullish stance on Bitcoin by increasing its 2025 performance targets. The “BTC Yield” target, which tracks the percentage increase in the market value of the company’s Bitcoin holdings, has been revised from 15% to 25%. Similarly, the “BTC $ Gain” target has been raised from $10 billion to $15 billion.
For Q1, the company reported a BTC Yield of 13.7%, nearly achieving the original annual target in just three months. Its BTC $ Gain stood at $5.8 billion—already 58% of the previous annual goal.
In addition to the common stock offering, Strategy completed two preferred stock IPOs during Q1, further increasing its financial flexibility. Added to this is the redemption and conversion of its 2027 convertible notes worth $1.05 billion.
Speaking on their recent strides, Phong Le, Strategy’s President and Chief Executive Officer, said, “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.”
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