Key Takeaways
- Strategy recorded its fifth consecutive quarterly loss as Bitcoin fell more than 25% in Q1.
- The company posted a $5.91 billion paper loss on its BTC holdings and a net loss of $4.2 billion.
- Strategy plans to sell $21 billion in stock to continue buying Bitcoin, despite mounting unrealized losses.
Strategy (formerly MicroStrategy) reported its fifth straight quarterly loss on Thursday as a sharp drop in Bitcoin (BTC) prices weighed heavily on its bottom line.
However, despite the mounting paper losses, Strategy’s conviction in its Bitcoin-centric strategy remains unshaken as it announced plans to sell up to $21 billion in additional stock to buy more tokens.
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$5.9 Billion Bitcoin Loss
In its first-quarter earnings report , Strategy disclosed a $5.91 billion impairment on its Bitcoin holdings, driven by a 25% decline in the price of BTC during the first three months of 2025.
The company also reported a net loss of $4.22 billion, or $16.49 per share, compared to a loss of $53.1 million, or $0.31 per share, during the same period last year.
As of April 28, Strategy owned 553,555 Bitcoins , valued at approximately $37.9 billion at $68,459 per Bitcoin.
Despite the market downturn, the company’s Bitcoin yield for Q1 was 11%, bringing its year-to-date yield to 13.7%. This has helped the company achieve more than 90% of its BTC yield target for 2025 in just four months.
Andrew Kang, Strategy’s financial chief, attributed the losses to a change in accounting methods.
“One fundamental difference now under fair value accounting is that our holdings are marked on the last day of every quarter, not throughout the quarter as before,” he explained during the company’s post-earnings call.
During Q1, Strategy added 301,335 BTC to its holdings, which helped MSTR gain 50% . The company is currently valued at $100.11 billion, and its stock has shown an impressive 269.66% return over the past year, trading at $381.60 per share.
Strategy To Expand Bitcoin Investments Despite Losses
Looking ahead, Strategy is not slowing down its Bitcoin purchases.
The company has entered into an agreement to sell up to $21 billion of its Class A stock, as part of a broader capital-raising effort.
These shares will be offered through an “at-the-market offering” program, which allows Strategy to raise funds without setting a fixed price.
The $21 billion stock sale is part of a larger $42 billion capital-raising plan announced in October 2024.
Through this strategy, the company intends to continue its aggressive Bitcoin acquisition plan through 2027, leveraging both fixed-income securities and stock sales.
Strategy first began purchasing Bitcoin in 2020, using cash reserves from its treasury.
Over time, the firm shifted its approach, including stock sales to fund further Bitcoin investments.
Despite the risks and ongoing market volatility, the firm’s long-term strategy remains focused on Bitcoin.
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