Strategy reports Q1 earnings miss, raises 2025 'BTC $ Gain' target to $15 billion
Quick Take
- Strategy (MSTR) reported first-quarter earnings results on Thursday afternoon.
- The company currently owns over 550,000 BTC, worth about $52 billion.
- “Our business model is to securitize Bitcoin,” Michael Saylor said last month on a webinar hosted by The Block. “We’ll just keep buying.”
Strategy reported first-quarter financial results Thursday afternoon, missing on both the top and bottom line.
Operating expenses for the quarter reached $6 billion, up more than 1,100% year-over-year. This is due in large part to unrealized losses on its btcoin holdings worth $5.91 billion after spending about $7.66 billion buying 80,715 BTC during the first quarter.
The company reported a net loss of $4.2 billion, or $16.49 per diluted share. Analysts expected a loss of $0.11 per share.
The company recorded total revenues of $111.1 million, which missed consensus estimates by about 5% and were down 3.6% from last year. Subscription services revenue grew 61% to $37.1 million. As of March 31, the company had cash and cash equivalents of $60.3 million.
Strategy currently holds 553,555 bitcoin with a market value of about $52 billion.
"Stay humble. Stack sats," Chairman Michael Saylor said Sunday in a post on X.
Strategy also announced a new $21 billion at-the-market offering, something K33 analysts predicted might happen as the company's current $21 billion equity program and $21 billion in fixed-income securities offerings are nearly depleted.
The company reported a year-to-date BTC Yield of 13.7%, a measure it uses to assess the performance of its bitcoin strategy. As the firm describes it, "BTC Yield is a key performance indicator (KPI) that represents the percentage change period-to-period of the ratio between the company’s bitcoin holdings and its Assumed Diluted Shares Outstanding."
Strategy's "BTC Gain" came in at 61,497 year to date, along with a $5.8 billion "BTC $ Gain." BTC Gain represents the number of bitcoins held by the company at the beginning of a period multiplied by the BTC Yield for such period. The firm is increasing its 2025 "BTC $ Gain" target from $10 billion to $15 billion.
"Our business model is to securitize Bitcoin," Saylor said last month on a webinar hosted by The Block. "We'll just keep buying."
Strategy's stock (ticker MSTR) is up 30% in the year-to-date period, closing Thursday's session at $381.60 per share. The company has a market cap of $104 billion.
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