MicroStrategy, now known as Strategy, is a company that creates software for analyzing data to help businesses make smart decisions. Founded in 1989, Strategy offers business intelligence, mobile software, and cloud services. They are based in Tysons Corner, Virginia.
Lately, Strategy has been in the spotlight for investing heavily in Bitcoin, making it one of the biggest corporate holders of the cryptocurrency. They are also focusing on artificial intelligence as part of their new direction. Despite financial challenges, Strategy continues to invest in its digital transformation initiatives.
Strategy Fiscal Q1 2025
MicroStrategy (MSTR) now known as Strategy, the largest corporate holder of bitcoin and the world’s first Bitcoin Treasury Company, announced its financial results for the first quarter of fiscal year 2025, which ended on March 31, 2025.
The company achieved 61,497 BTC Gain year-to-date in 2025, with a total BTC $ Gain of $5.8 billion.
It announced a new $21 billion ATM common stock equity offering and raised its 2025 BTC Yield target from 15% to 25%. However, the company reported a larger-than-expected loss per share for the quarter, and its revenue fell short of estimates.
Highlights:
- Total Revenue: $111.1 million, down 3.6% year-over-year.
- Subscription Services Revenue: $37.1 million, up 61.6%.
- Other Services Revenue: $14.2 million, down 15%.
- Gross Profit: $77.1 million, with a 69.4% margin (down from 74% in Q1 2024).
- Operating Expenses: $6.0 billion, up 1,976.1% year-over-year, including $5.9 billion in unrealized digital asset losses.
- Loss from Operations: $5.921 billion (Up from $203.7 million in Q1 2024).
- Net Loss: $4.217 billion ($16.49 per diluted share) Up from $53.1 million ($0.31 per share) in Q1 2024.
- Cash & Cash Equivalents: $60.3 million as of March 31, 2025 (up from $38.1 million at year-end 2024).
Boards Statements
Phong Le, President and Chief Executive Officer, highlighted the successful execution of a $21 billion common stock ATM, adding 301,335 BTC to its balance sheet and driving a 50% increase in MSTR share price. It also expanded its capital base with two major preferred stock IPOs, reinforcing its leadership in Bitcoin treasury adoption among public companies.
Andrew Kang, Chief Financial Officer, reported a strong start to the year, achieving a 13.7% year-to-date “BTC Yield,” surpassing 90% of its 2025 target, along with a $5.8 billion “BTC $ Gain,” reaching 58% of its annual goal.
Given strong market momentum, it raised its 2025 targets to 25% “BTC Yield” and $15 billion “BTC $ Gain.” Additionally, the adoption of fair value accounting resulted in a $12.7 billion increase in retained earnings, and despite a Q1 unrealized loss due to Bitcoin’s quarter-end price, the current price suggests an $8 billion fair value gain in Q2.
Impact on the Stock Market
Despite disappointing earnings, MicroStrategy’s stock rose 1% due to its aggressive Bitcoin strategy and positive market sentiment around cryptocurrency. Investors see MicroStrategy as a Bitcoin proxy, and its stock benefits when Bitcoin’s price increases. The company increased its Bitcoin holdings and raised its 2025 BTC Yield and BTC $ Gain targets.
The announcement of a $21 billion stock offering signaled confidence in its long-term Bitcoin accumulation plan. Crypto-focused investors welcomed its commitment despite financial losses. Broader market enthusiasm for Bitcoin-related stocks also helped drive the stock higher.
