Strategy, the company that really, really likes Bitcoin, just dropped its first-quarter numbers for 2025. And well, they weren’t exactly what folks were hoping for. The report came out Thursday afternoon, showing the company missed expectations on both how much money came in (revenue) and how much was left after paying bills (profit, or in this case, loss).
- The company reported a significant loss in Q1 2025, missing financial expectations. This was largely due to unrealized losses on their Bitcoin holdings.
- Operating expenses surged, primarily due to unrealized losses on their Bitcoin investments, impacting the company’s profitability.
- Despite the financial setbacks, the company is focused on its Bitcoin strategy, with plans to raise more capital and increase its BTC gain targets.
Operating expenses went way up, jumping over 1,100% compared to the same time last year. That sounds like a lot, doesn’t it? A big reason for this jump was something called “unrealized losses” on their Bitcoin stash. Think of it like this: they bought Bitcoin for a certain price, but by the end of the quarter, the market price was lower. They didn’t sell it, so the money isn’t actually gone, but on paper, it looks like a loss. This paper loss hit about $5.91 billion just in the first three months of the year.
Overall, the company reported losing $4.2 billion. That breaks down to $16.49 for every share of stock out there. Analysts who watch these things thought the loss would be much, much smaller, more like $0.11 per share. So, the actual loss was quite a bit bigger than predicted.
Total revenue for the quarter was $111.1 million. This was about 5% less than what the experts expected and down a little from last year too. One bright spot was their subscription services, which grew by 61% to $37.1 million. As of March 31, they had $60.3 million sitting in cash.
Now, about the Bitcoin. Strategy holds a massive amount. They currently have 553,555 Bitcoin. At today’s prices, that pile is worth around $52 billion. That’s a serious amount of digital gold, isn’t it?
Michael Saylor, the chairman and the guy who really champions the Bitcoin strategy, keeps it simple. He posted on X recently, saying, “Stay humble. Stack sats.” Sats are just tiny pieces of Bitcoin, by the way (like cents are to a dollar). It’s his way of saying keep buying Bitcoin, even the small bits.
Stay humble. Stack sats.
https://twitter.com/saylor/status/1784569199852691817
The company also announced plans to raise more money, up to $21 billion, by selling stock directly into the market. This wasn’t a huge surprise to some analysts. They figured Strategy would need more cash because their previous ways of raising money – selling stock and selling bonds (like loans the company takes out) – are almost used up.
Strategy uses some interesting ways to measure how well their Bitcoin plan is working. One is called “BTC Yield.” They say it shows the percentage change in the ratio between their Bitcoin holdings and the total number of company shares if everything that could become a share did.
Another measure is “BTC Gain.” This is the number of Bitcoin they had at the start of a period multiplied by that BTC Yield number. Year to date, their BTC Gain was 61,497. They also track “BTC $ Gain,” which was $5.8 billion so far this year. The big news here is they are raising their target for the 2025 “BTC $ Gain.” They were aiming for $10 billion, but now they think they can hit $15 billion. That’s a pretty confident jump.
Saylor is clear about the company’s direction. He said last month that their whole business is basically about “securitizing Bitcoin.” What does that mean? It means they use the company structure to hold and gain exposure to Bitcoin for investors. It’s a way for people to invest in Bitcoin through a stock. And his plan? Simple. “We’ll just keep buying,” he said.
Despite the earnings miss, Strategy’s stock (you might see it listed as MSTR) has had a pretty good year so far. It’s up 30% since the start of the year. It closed Thursday at $381.60 a share. The company’s total value on the market is around $104 billion right now.
