Key Takeaways
- Strategy reported a Q1 net loss of $4.2 billion, missing analyst expectations.
- The company spent $7.66 billion to acquire over 80,000 BTC during Q1.
- Strategy raised its 2025 BTC $ Gain target from $10 billion to $15 billion.
Strategy (MSTR) posted disappointing first-quarter results on Thursday, missing Wall Street estimates on both revenue and earnings while significantly increasing its 2025 Bitcoin performance target.
Financial results
The firm reported a net loss of $4.2 billion, or $16.49 per diluted share, far worse than the $0.11 per share loss analysts had expected.
Revenue came in at $111.1 million, down 3.6% year-over-year and approximately 5% below consensus.
Subscription services revenue was a bright spot, rising 61% to $37.1 million.
Operating expenses & Bitcoin acquisition
Operating expenses surged to $6 billion, driven largely by $5.91 billion in unrealized losses on newly acquired Bitcoin.
Strategy spent $7.66 billion to acquire 80,715 BTC in Q1, bringing its total holdings to 553,555 BTC — worth around $52 billion as of March 31.
Strategic initiatives
“Stay humble. Stack sats,” Chairman Michael Saylor posted on X over the weekend.
The company also launched a new $21 billion at-the-market equity offering, expected by K33 analysts as its current equity and fixed-income programs near depletion.
Bitcoin yield & future targets
Strategy’s year-to-date BTC Yield was 13.7%, and its “BTC $ Gain” hit $5.8 billion.
The company has now raised its 2025 BTC $ Gain target from $10 billion to $15 billion.
The firm defines BTC Gain as the product of Bitcoin holdings at the start of a period and the BTC Yield for that time.
Business model & stock performance
Saylor said last month:
Our business model is to securitize Bitcoin. We’ll just keep buying.
Strategy’s stock is up 30% year-to-date, closing Thursday at $381.60 with a market cap of $104 billion.
