Strategy Reports $5.9B Bitcoin Loss, Plans $21B Raise

Strategy, a firm known for its aggressive Bitcoin accumulation strategy, reported a significant loss for the first quarter of 2025. The company, led by Executive Chairman Michael Saylor, posted a loss of $16.49 per common share due to the substantial decline in Bitcoin's price during the quarter. This loss translated to a $5.9 billion decrease in the value of its Bitcoin holdings, following an accounting change that mandates the valuation of its assets at market prices.

Despite the substantial loss, Strategy remains committed to its Bitcoin acquisition strategy. The company announced plans to raise $21 billion through an at-the-market equity offering. This funding will be used to finance future Bitcoin purchases, as revealed by Saylor on X. Phong Le, the president and CEO of Strategy, expressed pride in the company's pioneering role in adopting a Bitcoin treasury standard, noting that over 70 public companies worldwide have followed suit.

Strategy, which transitioned from business intelligence to focus on Bitcoin accumulation, currently holds 553,555 BTC, valued at approximately $53 billion based on current market prices. The company, under the leadership of Bitcoin advocate Saylor, shows no signs of slowing its Bitcoin buying spree. It has nearly exhausted its previous $21 billion common stock offering, which was used for recent Bitcoin purchases.

Le highlighted the success of the company's previous capital raise, stating that it added 301,335 BTC to its balance sheet while achieving a 50% increase in the share price of MSTR during the same period. Alongside the latest capital raise, Strategy reported a year-to-date BTC Yield of 13.7%, a proprietary performance metric measuring the percentage change in Bitcoin per diluted share. The company's BTC $ Gain for Q1 stood at $4.1 billion, nearly halfway toward its $10 billion target for the year.

Strategy has set even more ambitious targets, raising its BTC Yield target to 25% from 15% and increasing its BTC $ Gain target to $15 billion. Le attributed this momentum to "successful capital execution." The company's aggressive strategy reflects its confidence in Bitcoin's long-term value, despite the recent price volatility.