Strategy, previously known as MicroStrategy, has been a leader in corporate Bitcoin investment, holding over 500,000 BTC as of recent reports. On May 1, 2025, the company announced plans to raise an additional $21 billion through equity and debt offerings to expand its Bitcoin holdings, following a Q1 2025 earnings report that likely showed a significant loss due to Bitcoin’s price volatility.
Strategy has been a pioneer in corporate Bitcoin adoption, beginning its Bitcoin treasury strategy in August 2020. As of recent reports, the company holds over 500,000 BTC, purchased at an average cost of approximately $66,608, with a market value reaching $46 billion by February 2025 (Strategy Q1 2025 Earnings Preview). The latest capital raise, part of its “21/21 Plan” announced in 2024, aims to secure $42 billion by 2027, with $21 billion through equity and $21 billion via fixed-income securities, primarily to acquire more Bitcoin (MicroStrategy’s $42 Billion Bitcoin Investment Plan).
The $21 billion raise, announced on May 1, 2025, follows a series of successful capital raises, including $18.8 billion through equity offerings and $6.2 billion via convertible notes in early 2025, as mentioned in earnings previews (Strategy Incorporated Earnings Dates). This strategy positions Strategy as the largest corporate holder of Bitcoin, far outpacing competitors like Tesla, and reflects growing institutional confidence in Bitcoin as a store of value, akin to gold.
Q1 2025 Earnings: A Large Loss Due to Bitcoin Price Decline
Strategy’s Q1 2025 earnings, reported on May 1, 2025, likely included a significant financial loss, driven by Bitcoin’s price volatility. Analysts expected a narrowed loss per share of $0.11, down from $0.31 in Q1 2024, with revenue forecasted at $116.6 million, marking a 1.2% year-over-year growth (Strategy Q1 Earnings Preview). However, the adoption of the new FASB fair value accounting standard, effective January 1, 2025, resulted in a $12.75 billion increase to retained earnings due to the higher market value of Bitcoin compared to its carrying value, but also highlighted a $5.91 billion unrealized loss during Q1 2025, as Bitcoin prices dipped to $77,351 (Can Strategy Survive a Bitcoin Crash?).
This loss underscores the risks of Strategy’s Bitcoin-centric model, especially amid market uncertainty in early 2025, marked by tariff fears and economic volatility. Despite the loss, the company’s Bitcoin holdings remain profitable overall, with an unrealized gain of 14.62%, but the Q1 decline impacted its financials significantly, aligning with the headline’s mention of a “large Q1 loss on BTC price decline.”
