Strategy Posts $4B Loss as Bitcoin Accumulation Pushes Costs Higher
Strategy Inc.'s aggressive Bitcoin strategy took a toll in the first quarter, as the company reported a multibillion-dollar loss driven largely by unrealized losses on its expanding crypto holdings.
The firm revealed a net loss exceeding $4 billion as its operating expenses soared to $6 billion — a staggering year-over-year increase that reflects the high cost of its digital asset exposure.
Despite growing interest in its subscription services, which rose 61% to generate $37.1 million, overall revenue for the quarter slipped 3.6% to $111.1 million, missing analyst estimates. By the end of March, Strategy was left with just over $60 million in cash on hand, highlighting the capital-intensive nature of its current business model.
Over the three-month period, the company added more than 80,000 BTC at an acquisition cost nearing $7.7 billion. This contributed to a paper loss of nearly $6 billion amid volatile crypto market conditions. As of the close of Q1, Strategy’s Bitcoin reserves totaled over 553,000 BTC, valued at approximately $52 billion at market rates.
To maintain momentum, the firm announced a new $21 billion at-the-market equity offering. This move follows near exhaustion of its previous funding programs, which included both equity and debt raises. Analysts had anticipated the need for fresh capital, given the pace at which the company has been scaling its Bitcoin holdings.
The company also shared internal performance indicators tied to its Bitcoin-based strategy. One such metric, BTC Yield — which tracks the relative change between BTC holdings and diluted shares — reached 13.7% year-to-date. Another measure, BTC Gain, showed an increase of over 61,000 BTC, translating to a $5.8 billion notional value. The firm has now raised its annual BTC gain target for 2025 from $10 billion to $15 billion.
Rather than pulling back, Strategy is continuing to frame Bitcoin as the core of its long-term capital deployment plan. With additional capital in the pipeline and a sharpened focus on digital asset securitization, the firm appears committed to expanding its BTC footprint regardless of short-term volatility.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
