Bitcoin Strategy Sees Setback in Q1, Plans $21B Fundraise to Boost Holdings Amid Market Correction
Strategy (MSTR), the prominent business intelligence firm known for its aggressive Bitcoin acquisitions, reported a significant $16.5 billion loss in Q1 of 2025, primarily due to a downturn in the price of Bitcoin. The decline in BTC’s value during the quarter has heavily impacted the company’s investment portfolio. However, despite the rough start to the year, Strategy remains bullish on its Bitcoin strategy and intends to raise $21 billion in new capital to further expand its holdings.
This quarter’s loss marks a challenging period for Strategy, with its Bitcoin holdings accounting for a substantial portion of the firm’s total assets. Nevertheless, the company is optimistic about the long-term trajectory of Bitcoin and plans to increase its exposure further through new fundraising efforts.
The firm’s core business, including its software division, saw a slight dip in revenue, bringing in $111.1 million, a 3.6% decrease compared to the previous quarter. On the other hand, its subscription revenue grew by 61%, reaching $37.1 million, showcasing the resilience of its non-Bitcoin operations.
Despite the market’s volatility, Strategy’s Bitcoin holdings continue to grow in value. With the price of Bitcoin now at $96,547, up from $68,459 per coin when it was initially acquired, the company has seen a significant unrealized gain. Strategy’s Bitcoin portfolio currently totals 553,555 BTC.
CEO Phong Le emphasized, “This quarter’s loss does not alter our conviction in Bitcoin. We see it as a crucial asset in our long-term strategy and are committed to growing our position, even in times of market turbulence.”
Following the announcement, shares of Strategy saw a moderate rebound, signaling continued investor confidence in the firm’s long-term strategy and its focus on Bitcoin as a key asset for future growth.
