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Strategy's Q1 Earnings Show 13.7% BTC Yield, $5.8 Billion Gain

Coin WorldFriday, May 2, 2025 9:29 am ET

1min read

Michael Saylor, the CEO and engineer of the successful BTC Treasury firm Strategy, held an earnings call on May 1, 2025, to discuss the company's Q1 financial results and provide forward-looking statements. Saylor emphasized that Strategy is playing a pivotal role in expanding institutional interest in Bitcoin (BTC).

During the call, Saylor reiterated BTC’s unique value proposition, stating that Bitcoin has no counterparty risk. He highlighted that global adoption of Bitcoin is progressing rapidly and predicted that the first nation to print its own currency to buy Bitcoin would win. Saylor also noted that the adoption of the Bitcoin standard by more companies is beneficial, as it legitimizes Bitcoin and attracts more capital, thereby stabilizing and driving up its price.

The Q1 earnings report highlighted Strategy’s capital market maneuvers, which included raising $7.7 billion through common stock, convertible notes, and preferred stock ipos to acquire 61,497 BTC. The report stated that the company had achieved a 13.7% “BTC Yield” and $5.8 billion “BTC $ Gain” year-to-date. Saylor celebrated BTC’s adoption by over 70 public companies, positioning Strategy as a leader in a “digital gold rush.” He dismissed concerns about BTC’s volatility, emphasizing long-term appreciation, and justified debt-fueled purchases as accretive, despite a $4.2 billion net loss from unrealized fair value losses.

Saylor’s bullish vision casts BTC as digital capital poised to dominate finance. However, critics have pointed out numerous issues with Strategy’s highly leveraged model. While the company touts a 50% share price increase and a $12.7 billion retained earnings boost from fair value accounting, its reliance on bonds to fund BTC purchases introduces significant risks. Issuing $2 billion in 0% Convertible Senior Notes due 2030 and perpetual preferred stock with high dividend obligations (8% for STRK, 10% for STRF) commits Strategy to substantial liabilities. These instruments, while providing capital, encumber the balance sheet with senior claims that could erode shareholder value if BTC’s volatility turns south.

Despite these concerns, Saylor remains optimistic about the future of Bitcoin. Shortly after the call, he posted an AI-generated image to X with the caption, “Tulip season ends. Bitcoin is forever.” This statement underscores his unwavering belief in the long-term potential of Bitcoin and its role in the future of finance.

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