Strategy's Bitcoin Holdings Surge 45% to 553,555 BTC, Driving $21 Billion Equity Offering

Strategy, formerly known as MicroStrategy, has solidified its position as the world’s largest corporate holder of Bitcoin. The firm's Q1 2025 financial results revealed that it now holds 553,555 BTC, acquired through a total investment of $37.9 billion. This translates to an average cost of $68,459 per Bitcoin. With current market prices valuing the holding at approximately $52 billion, Strategy has accelerated its transition from a software firm to a public Bitcoin investment vehicle.

Despite reporting a Q1 company loss of $4.23 billion and a 3.6% year-over-year revenue decrease to $111.1 million, Strategy is moving forward with ambitious plans to invest significant new capital. The company's leadership has directed a laser-like focus on goodwill accumulation and growth, emphasizing the increasing number of Bitcoin it holds and the enhanced value it expects its Bitcoin to generate in the future.

Strategy's actions this quarter signal a clear pivot away from its traditional software business. While its top-line income and net profit have declined, the company now measures success through the increasing number of Bitcoin it holds and the enhanced value it expects its Bitcoin to generate in the future. In a daring move, Strategy has upped its 2025 Bitcoin return target from 15% to 25%, indicating its expectation of a more effective use of BTC through yield-producing financial instruments, partnerships, or on-chain financial products. The company has also raised its Bitcoin profit projection from a previous target of $10 billion in gains to a $15 billion target, with no change in the BTC price across these two forecast years.

To support these goals, Strategy declared a new $21 billion at-the-market (ATM) equity offering, intended to further augment its Bitcoin acquisition program. This capital raise follows a model used successfully in years past to fuel its accumulation strategy. However, this is just a small part of a much larger and very aggressive financial plan.

In a bold move, Strategy revealed its new “42/42 Plan”—a sweeping initiative to amass an incredible $84 billion in total capital to acquire even more Bitcoin. This plan is twice as big as last year’s “21/21 Plan” and reflects both an escalation in ambition and a doubling down on Bitcoin’s strategic importance to the firm. The designation “42/42” symbolizes the company’s vision of exponentially accumulating Bitcoin, making it twice as large in both the kinds of things one would traditionally accumulate and the timeframe one would expect to take to accumulate those kinds of things. The plan involves traditional tools such as equity offerings and debt, as well as semi-traditional Bitcoin fundraising strategies.

Very few in the corporate world have shown this kind of commitment to Bitcoin. While many companies have cautiously made small forays into Bitcoin or blockchain investments, Strategy has gone much further, pulling in far more dollars for its far more straightforward calls to do so. Strategy’s transformation has piqued the interest of Wall Street. Analysts and institutional investors now see its stock as a Bitcoin substitute. Strategy currently trades at a $2.13-for-every-$1 net asset value (NAV), only because investors trust it will deliver more Bitcoin-like returns over the next 24 months than most publicly traded companies. That’s a pretty low threshold given the operational losses it’s racking up in what used to be the company’s cash-cow business.

The company’s stock typically outperforms traditional tech counterparts when Bitcoin rises. Even during brief corrections in BTC, it has demonstrated resilience, which underscores investor belief in the long-term value of the company’s digital asset portfolio. As Bitcoin use continues to spread and institutions ramp up their interest, Strategy is doing everything possible—within a somewhat healthy managerial constraint—to lay claim to being the chief corporate custodian of sound digital money. Now, this could truly be a recipe for disaster, given how far from its value-investing comfort zone the firm seems to be straying, and how undercooked its Bitcoin educational materials are. But that isn’t what’s happening. Rather, it’s this: a firm representing a style of investing that’s long on value appears to be courting the Bitcoin community very hard indeed.

As we enter the second quarter, the question everyone is asking is this: How quickly can Strategy deploy its new $21 billion raise? And while we’re on the topic, is the 42/42 Plan the next big thing in Bitcoin’s march into the corporate financial mainstream?