MSTR Shrugs Off $4.2B Q1 Loss, Announces $21B Raise to Fuel Bitcoin Mania

- 2025 Q1 Strategy $4.2 Billion Loss - Bitcoin value drop, software revenue decrease, yet stock prices rise [Unblock Media] Strategy reported a loss of $4.2 billion($16.49 per share) in the first quarter of 2025. The primary reason for this loss was a $5.9 billion drop in Bitcoin value. The volatility in Bitcoin's price resulted from a combination of global economic uncertainty, changes in central bank monetary policies in major countries, shifts in market liquidity, and various technical and psychological factors. Bitcoin's price fell significantly in the first three months of this year and is currently trading at approximately $96,547, having risen by about 2.5% over the past 24 hours. the leadership of Chairman Michael Saylor, the company will not slow down on purchasing Bitcoin. Despite spending nearly all of last year's $21 billion general stock issuance, a new $21 billion stock issuance was announced this time, primarily intended for additional Bitcoin purchases. This strategy aims to reinforce the company's identity as a 'Bitcoin enterprise' and to create shareholder value. In fact, the slight rise in stock prices during aftermarket trading can be seen as the market positively evaluating the company’s strategy and funding approach. On the software business front, quarterly revenue decreased by 3.6%, from $115.2 million last year to $111.1 million. However, subscription service revenue increased from $23 million last year to $37.1 million. This rise in subscription service revenue is mainly due to the accelerated transition to the cloud, the launch of new subscription-based services, or upgrades to existing services, and the strengthening of recurring revenue structures. Subscription services are becoming an important part of generating continuous revenue. During this quarter, Strategy's "BTC Yield" reached 11.0%, which means an increase in Bitcoin holdings relative to issued shares. The "BTC $ Gain" was approximately $4.1 billion, bringing the company closer to its annual target of $10 billion. The company has adjusted its long-term "BTC Yield" target from 15% to 25% and its "BTC $ Gain" target from $10 billion to $15 billion. So far, the company's stock price has risen by 27% since the beginning of the year. The company holds 553,555 Bitcoins worth $37.9 billion, each purchased at $68,459. At the current market price, this stash is worth approximately $53 billion Phong Le, CEO of Strategy, stated, "Our capital market strategy is providing shareholder value while increasing our Bitcoin holdings. With over 70 public companies worldwide adopting Bitcoin financial standards, we are proud to lead in this field." Additionally, stock prices are slightly rising in after-hours trading.