Strategy Reports 13.7% Yield on Bitcoin Holdings, Misses Revenue Expectations

Strategy, a company formerly known as microstrategy, reported a 13.7% year-to-date yield on its Bitcoin holdings for the first quarter of 2025. This yield, which translates to a gain of over 61,000 BTC worth approximately $5.8 billion, was used internally by the company to measure the success of its Bitcoin purchases. Despite this gain, Strategy missed Wall Street expectations for the quarter, with revenue falling to $111.1 million, 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. The company'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, Strategy remains committed to its Bitcoin-focused strategy. The company announced plans to offer an additional $21 billion worth of stock to finance future Bitcoin purchases. 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.

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.

Ask Aime: What's behind MicroStrategy's Bitcoin strategy?

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.