Bitcoin Investment Strategy to Raise $21B More, Posts Substantial Loss in Q1 Due to BTC Price Fall

Bitcoin Strategy Sees Q1 Loss Amid Price Decline, Aims to Raise $21B for Expansion

Strategy (MSTR), the publicly traded business intelligence firm with a heavy focus on Bitcoin investments, reported a significant loss of $16.5 billion in the first quarter of 2025. The loss was mainly attributed to a decline in the price of Bitcoin, which caused a drop in the value of the company’s holdings. Despite this setback, Strategy remains unwavering in its commitment to Bitcoin, announcing plans to raise $21 billion in additional capital to further its acquisition strategy.

In addition to its Bitcoin-related activities, Strategy’s traditional business, which includes software services, saw a slight dip in revenue by 3.6%, totaling $111.1 million in Q1. However, its subscription-based services showed growth, with revenue reaching $37.1 million, a significant increase compared to $23 million in the previous year.

Despite the losses, Strategy has seen success with its Bitcoin investment strategy. The firm’s Bitcoin holdings yielded a 11.0% return for the first quarter, and it plans to raise its BTC Yield target to 25% for the rest of the year. The company now expects Bitcoin to generate $15 billion in gains, up from an earlier target of $10 billion.

Currently, Strategy holds 553,555 Bitcoin, purchased at an average price of $68,459 each. The current price of Bitcoin at $96,547 gives the company a significant unrealized gain, further supporting its long-term strategy.

CEO Phong Le commented, “While the market volatility of Bitcoin has impacted our short-term results, we are confident in its long-term value proposition. Our decision to continue acquiring Bitcoin reflects our belief in its future potential.”

Shares of Strategy saw a rebound in after-hours trading, suggesting investor confidence in the company’s strategy, despite the Q1 challenges.