Strategy, the largest corporate holder of bitcoin, reported a $4.2 billion loss in Q1 2025 due to a decline in bitcoin’s price but announced a $21 billion capital raise to continue its aggressive investment in the cryptocurrency. The move underscores the company’s long-term confidence in bitcoin amid a volatile market.

Strategy, formerly known as MicroStrategy, reported a $4.2 billion loss for the first quarter of 2025, driven by a $5.9 billion writedown on its bitcoin holdings as the cryptocurrency’s price dropped significantly.

The decline, estimated at 11.7% by NYDIG Research, marked bitcoin’s worst Q1 performance since 2015, aligning with broader market turbulence that saw the S&P 500 correct by 10% and post a -4.3% quarterly return, according to Nasdaq data.

Despite the financial setback, Strategy announced a new $21 billion at-the-market common stock equity offering to fuel further bitcoin purchases, signaling unwavering confidence in the asset’s long-term potential.

The company, which rebranded from MicroStrategy in February 2025 to emphasize its identity as the “first and largest Bitcoin Treasury Company,” currently holds 553,555 BTC—valued at $53 billion as of May 1, 2025. This stack, acquired for $37.9 billion at an average price of $68,459 per BTC, positions Strategy as the largest corporate bitcoin holder globally, surpassing even the U.S. government.

Led by Executive Chairman Michael Saylor and CEO Phong Le, Strategy raised its long-term targets, aiming for a 25% BTC Yield (up from 15%) and a $15 billion BTC $ Gain (up from $10 billion). “Our capital markets strategy continues to grow our Bitcoin holdings while delivering superior shareholder value,” Le said in a statement.

He noted that over 70 public companies worldwide have adopted a bitcoin treasury standard, with Strategy at the forefront.

The company’s software business, however, saw a 3.6% revenue decline to $111.1 million, though subscription services revenue grew to $37.1 million from $23 million year-over-year. Shares of Strategy are up 27% year-to-date, and bitcoin’s price has shown signs of recovery, trading at $96,547 on May 1, 2025, a 2.5% increase over the past 24 hours.

Market reactions on X were mixed. Some, like user LuvKaizen, suggested Strategy’s purchases could trigger FOMO among other institutions, while iamesportsbond cautioned that “conviction without adaptability can be fatal.” Strategy’s bold move comes amid a history of resilience—its stock surged 16% in November 2024 after a $4.6 billion bitcoin buy, per The Motley Fool, and has outperformed bitcoin’s 956% five-year gain.

Strategy’s persistence highlights the growing trend of corporate cryptocurrency adoption, even as Q1 2025 underscored the risks of such strategies in volatile markets. As economic uncertainty lingers, the company’s next moves will likely influence both bitcoin’s trajectory and corporate investment trends.

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