Strategy Posts $4.2B Loss, Sets Sights on $21B Capital Raise As Michael Saylor Doubles Down on Bitcoin

Despite recording a staggering $4.2 billion net loss in Q1 2025, Strategy is doubling down on its aggressive Bitcoin acquisition strategy, planning to raise $21 billion through an at-the-market equity offering.

Unrealized Loss Due to Accounting Rule Shift

The reported loss was largely attributed to a $5.9 billion unrealized markdown, stemming from updated fair value accounting rules. These regulations require companies to reflect the market price of Bitcoin at the end of the quarter—in this case, $82,445 per BTC.

While this paper loss impacted Q1 results, Strategy is well-positioned for a rebound. With Bitcoin’s price surging to nearly $96,000 in late April, the firm is now anticipating a potential $8 billion gain in fair value for Q2.

Bitcoin Holdings Continue to Climb

As of the end of April, Strategy held 553,555 BTC—acquired at an average price of $68,459. Notably, 301,335 of these coins were added during the first quarter alone, highlighting the company’s commitment to aggressive accumulation.

The firm also reported a year-to-date BTC Yield of 13.7%. This metric, developed internally, tracks the percentage change in Bitcoin per diluted share. In Q1 alone, the company achieved a BTC $ Gain of $4.1 billion—nearly halfway to its original $10 billion target for 2025.

Raised Targets Signal Greater Ambition

Strategy is now raising the bar for the rest of the year. The company has increased its BTC Yield target to 25%, up from the initial 15%, and raised its BTC $ Gain goal to $15 billion.

CEO Phong Le praised the execution of their capital strategy: “Successful capital execution” was credited as the key driver behind the firm’s momentum. Le also highlighted a growing trend, noting that “over 70 public companies globally have begun adopting a Bitcoin treasury model.”

Market Confidence and Future Outlook

Despite its Q1 setback, Strategy’s share price is up 27% for the year, reflecting investor confidence in its long-term vision. The company’s capital raise and elevated performance targets suggest that it’s far from retreating. Instead, Strategy appears ready to take an even more dominant role in the emerging world of corporate Bitcoin treasuries.

With the industry evolving rapidly and more public firms embracing Bitcoin as a reserve asset, Strategy aims to solidify its position at the forefront of this movement.

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