MicroStrategy's Bitcoin Buying Spree Continues
Bitcoin Generates 13.7% Return in Q1 2025, Falling Short of Wall Street Predictions
After reporting a 13.7% YTD Bitcoin yield that fell short of Wall Street Q1 estimates, MicroStrategy, now commonly referred to as Strategy, remains dedicated to its Bitcoin-focused strategy. The company is spearheading a massive $21 billion fundraising mission to purchase even more Bitcoin.
Currently, Strategy boasts over 550,000 BTC valued at approximately $53 billion. However, the first quarter of 2025 saw an unrealized loss of $5.9 billion on their Bitcoin holdings. The average purchase price is around $68,500, with hopes of pushing the yield up to 25%.
Despite the losses, Strategy unveiled plans to boost their Bitcoin yield target for 2025 to an aggressive 25%, aiming for a gain of about $15 billion. This comes after missing analyst expectations for the quarter.
Revenue for the quarter fell to $111.1 million, marking a 3.6% decrease compared to the same period last year. Analysts had anticipated a slightly higher figure. Strategy reported a substantial net loss of $4.2 billion, greatly surpassing expectations of an 11 cents per share loss.
Operating expenses surged nearly 2,000%, primarily due to the $5.9 billion unrealized loss on Bitcoin holdings during the quarter. Nevertheless, Strategy remains resolute in its pursuit of additional Bitcoin acquisitions.
Shares of Strategy closed on May 1 at $381.60, up 0.39%, but dropped slightly in after-hours trading. The stock has gained over 31.5% so far in 2025 but remains below its November peak of over $470 per share.
Subscription services revenues showed growth, increasing to $37.1 million, representing a 61.6% year-over-year boost. Strategy’s president and CEO, Phong Le, expressed pride in leading the charge in the emerging Bitcoin treasury standard space.
Since starting its Bitcoin purchasing initiative in 2020, Strategy has amassed an impressive Bitcoin treasure worth more than $53 billion, placing it as the largest corporate holder of Bitcoin. Public companies collectively hold over $73 billion worth of Bitcoin, with institutional funds holding approximately $128 billion more.
Although Strategy experienced losses related to Bitcoin's price movements, its resilience in sticking to its Bitcoin acquisition strategy is noteworthy. The company has announced its intention to offer an additional $21 billion worth of stock to finance further Bitcoin purchases.
Key Metrics (As of May 2025):
| Metric | Value ||-------------------------------|----------------------|| Total Bitcoin Holdings | 555,450 BTC || Average Purchase Price | ~$68,550 per BTC || Current Market Value (approx.)| $52+ billion || 2025 BTC Yield Target | 25% || 2025 BTC $ Gain Target | $15 billion || New ATM Offering | $21 billion |
[1] MicroStrategy’s Q1 2025 Earnings Release: https://ir.microstrategy.com/news-releases/news-release-details/microstrategy-reports-record-q1-2025-results[4] MicroStrategy’s Latest SEC Filing: https://www.sec.gov/Archives/edgar/data/1325832/0001193125-22-115682.htm[5] Institutional Bitcoin Adoption Trends: https://www.researchgate.net/publication/354239508_Institutional-Bitcoin-Adoption_A_Case_Study_of_Grayscale-Investment-Trust
- MicroStrategy, having a current market value of over $52 billion in Bitcoin, is aiming to boost their yield target for 2025 to an aggressive 25%, with the goal of adding an additional $15 billion to their holdings.
- In an effort to finance this Bitcoin acquisition spree, MicroStrategy announced its intention to offer an additional $21 billion worth of stock.
- Despite public companies collectively holding over $73 billion worth of Bitcoin and institutional funds holding approximately $128 billion more, MicroStrategy, with its 555,450 BTC, leads as the largest corporate holder of Bitcoin.
