MSTR Earnings: Strategy Posts $5.8 Billion Gain on Its Bitcoin Holdings
Strategy (NASDAQ: MSTR), formerly known as MicroStrategy, reported a major highlight in its Q1 2025 earnings — a $5.8 billion year-to-date gain on its Bitcoin holdings, showcasing the company’s aggressive bet on digital assets under the leadership of Chairman Michael Saylor.
- This massive gain highlights Strategy’s position as the largest corporate holder of Bitcoin, far exceeding any traditional software firm.
- The strong return underscores its dual identity as both a software provider and a cryptocurrency investment vehicle.
Bitcoin-Centric Capital Strategy Expands
Strategy’s first-quarter update revealed an increased capital deployment plan of $84 billion, dedicated entirely to purchasing more Bitcoin — the largest cryptocurrency by market cap.
- The company also reported a 13.7% Bitcoin yield for Q1, with an ambitious goal to raise that to 25%.
- Its Bitcoin gain target has now been raised to $15 billion, reflecting a bullish long-term view on digital asset performance.
This approach signals Strategy’s transition into a Bitcoin-first enterprise, with equity funding and capital reserves tightly aligned with crypto market cycles.
Stock Offering Fuels Bitcoin Accumulation
During Q1, Strategy completed a $21 billion stock offering, which significantly boosted its Bitcoin stash — now exceeding 300,000 BTC on its balance sheet.
- The acquisition took place while Bitcoin’s price fluctuated from $109,000 down to $80,000, indicating Strategy’s buy-the-dip strategy.
- This positioning is expected to deliver long-term asymmetric gains if Bitcoin prices rebound to previous highs or surpass them.
Despite crypto volatility, Strategy has shown consistent execution in capitalizing on equity markets to fuel its crypto accumulation.
Revenue and Cash Position Remain Resilient
While Strategy’s total revenue for Q1 stood at $111.1 million, slightly below the $114.6 million reported in Q1 2024, its software subscription revenue grew by 61%, showing healthy momentum in its core business.
- This revenue mix reflects that while the focus is on Bitcoin, the enterprise software segment remains operationally strong.
- The company’s cash position rose to $60.3 million, up from $38.1 million at the end of 2024, offering added financial stability.
These financials support Strategy’s dual thesis: long-term crypto growth alongside steady subscription-based software revenue.
Unexpected Losses on Bitcoin Revaluation
Despite the Bitcoin gains, Strategy posted a Q1 loss of $16.53 per share, much steeper than Wall Street’s expected $0.11 loss, primarily due to a revaluation of its Bitcoin assets under fair value accounting.
- This accounting-based loss does not reflect actual cash losses but stems from temporary price volatility in crypto markets.
- Nevertheless, it introduces earnings volatility risk, a common issue for firms deeply exposed to digital assets.
Still, MSTR stock is up 32% year-to-date, signaling investor confidence in the company’s long-term Bitcoin strategy.
