Bitcoin Strategy Aims for Additional $21B Capital Raise, Posts Heavy Losses in Q1 as BTC Falls

Bitcoin Strategy Faces Setback with $21B Fundraising Amid Q1 Loss

Strategy (MSTR) saw a significant downturn in Q1 2025, posting a loss of $16.49 per share, largely driven by a $5.9 billion depreciation in the value of its Bitcoin (BTC) holdings, as the cryptocurrency experienced a price drop during the first quarter of the year.

Despite the quarter’s losses, Strategy’s commitment to its Bitcoin-focused investment strategy remains unshaken. Following a successful Bitcoin acquisition in the last round of funding, the company is preparing for another round of capital raise, aiming for an additional $21 billion to continue expanding its Bitcoin holdings.

The firm’s software business revenue saw a minor decline of 3.6%, totalling $111.1 million, compared to $115.2 million during the same period last year. However, subscription-based services showed growth, with revenue reaching $37.1 million, up from $23.0 million in the previous year.

In terms of Bitcoin holdings, Strategy achieved a BTC Yield of 11.0% for Q1, which signifies the company’s ability to generate growth in Bitcoin relative to shares outstanding. Bitcoin’s value surged during the quarter, and the company’s Bitcoin gains totaled approximately $4.1 billion, surpassing its set target for the year.

Looking ahead, Strategy raised its BTC Yield goal to 25% and its BTC $ Gain target to $15 billion, revising the original expectations of 15% and $10 billion, respectively.

While the company’s overall Q1 performance was negatively impacted by Bitcoin’s price decline, its stock price has rallied 27% since the beginning of 2025. Currently trading at $96,547 per Bitcoin, the digital asset is showing signs of recovery after a rough start to the year.

As of now, Strategy holds a massive 553,555 Bitcoin, acquired at an average price of $68,459 per unit, with the current valuation of its Bitcoin stake reaching $53 billion.

“The increasing institutional interest in Bitcoin solidifies our position as an industry leader in digital asset strategy,” said Phong Le, CEO and President of Strategy.

In after-hours trading, shares saw a slight uptick as investors continue to back the company’s long-term Bitcoin strategy.