Strategy Reports $4.2B Q1 Loss, Unveils New $21B ATM Offering
Strategy closed Q1 with a net loss of $4.2 billion and raised its BTC $ Gain target to $15 billion. The company also announced a new $21 billion ATM offering.
Strategy reported a net loss of $4.2 billion for the first fiscal quarter of 2025.
- While the company did not break out losses tied to its Bitcoin holdings, it disclosed a sharp increase in operating expenses (up to $6 billion).Â
- Software revenue declined 3.6% year-over-year to $111.1 million, falling short of analyst expectations.
- Subscription revenue climbed 61% to $37.1 million.
- Cash reserves stood at $60.3 million at the end of the quarter.Â
The company also announced a $21 billion at-the-market (ATM) common stock offering to fund additional Bitcoin acquisitions.
Financial Performance Overview
Operating expenses for the quarter nearly doubled from a year earlier, driven primarily by $5.91 billion in undisclosed losses tied to the company’s cryptocurrency reserves. Strategy acquired 80,715 BTC in Q1 for roughly $7.66 billion. However, a decline in Bitcoin prices led to a downward revaluation of those assets.
As of the end of March, Strategy held $60.3 million in cash and cash equivalents, providing a short-term liquidity buffer.
Related: Strategy Expands Bitcoin Reserve with $1.42 Billion Purchase
Bitcoin Strategy Priorities
As of March 31, Strategy held 553,555 BTC with an estimated market value of approximately $52 billion. The company reported an annualized BTC Yield of 13.7% and a cumulative BTC$ Gain of more than $5.8 billion.Â
Furthermore, Strategy raised its 2025 BTC$ Gain target from $10 billion to $15 billion and increased its long-term BTC Yield goal from 15% to 25%.
To maintain its current pace of Bitcoin accumulation, the company launched a new $21 billion ATM common stock offering. By the end of Q1, Strategy had nearly exhausted its previous $21 billion program.
Related: Bitcoin for Corporations 2025: Powered by MicroStrategy
Our capital markets strategy continues to grow our Bitcoin holdings while delivering superior shareholder value. 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.
Strategy (MSTR) shares have gained 30% year-to-date, closing at $381.60 on May 1. The company’s market capitalization now stands at around $104 billion.
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