In This Article:
Strategy, previously MicroStrategy, has just reported a year-to-date Bitcoin gain of $5.8 billion, and a BTC yield of 13.7%.
The company increased its capital deployment plan to $84 billion, but now split into equity and fixed income instruments, for the purpose of buying more Bitcoin. Additionally, they raised their BTC yield target to 25% and Bitcoin gain target to $15 billion.
In Q1, Strategy executed a monumental $21 billion stock offering which enabled it to add over 301,000 BTC to its balance sheet.
Although Bitcoin fell to around $82,445 at quarter end (creating a temporary paper loss), the company asserts that prices have fully recovered to $97,000 and if true, this would yield a potential unrealized gain for Q2 of $8 billion, reads the report.
Despite a quarterly loss due to temporary valuation shifts, Strategy’s cash position strengthened to $60.3 million, up from $38.1 million at the end of 2024.
On the financial front, Strategy's total revenue was $111.1 million—slightly lower than the prior year's $114.6 million—attributable to lower sales of product support.
The good news is that subscription services revenue was up 61.6%, meaning that even with a laser focus on Bitcoin, strength in the software business remains.
Lastly, the company benefited from recently developed fair value accounting which allows Bitcoin market price to be reflected more accurately in earnings. At the start of the year, they added $12.7 billion to retained earnings.
With more than 70 publicly traded companies now implementing comparable treasury strategies, CEO Phong Le stated that Strategy is honored to spearhead the corporate Bitcoin movement.
Strategy was expected to lose $0.11 per share but instead reported a much larger loss of $16.53 due to Bitcoin revaluation. At press time, MSTR, Strategy's stock price is trading at $381.60, up by 0.39% over the last day.