U.S. Software Company Strategy (formerly MicroStrategy) Releases Q1 2025 Financial Report
Strategy has announced that both revenue and profit for the first quarter of 2025 fell short of market expectations. The total revenue for the quarter was $111.1 million, which was not only approximately 5% below market expectations but also a decrease of 3.6% compared to the same period last year. The loss per share reached $16.49, primarily due to a significant decline in Bitcoin prices over the past three months, leading the company to recognize an impairment loss of up to $5.9 billion on its Bitcoin holdings.
Under the leadership of Executive Chairman Michael Saylor, Strategy has shown no signs of slowing down in acquiring Bitcoin. In last week’s latest Bitcoin purchase, the company nearly exhausted the funds raised from its previous $21 billion common stock offering. Consequently, alongside the financial report announcement, it also unveiled a new $21 billion common stock offering program at market price.
In terms of software business, Strategy’s revenue for this quarter declined 3.6% from $115.2 million last year to $111.1 million, while subscription service revenue grew to $37.1 million, up from $23 million the previous year.
During this quarter, Strategy achieved an 11% “Bitcoin Yield” (BTC Yield), reflecting the growth of its Bitcoin holdings relative to the diluted share count. The “Bitcoin Dollar Gain” (BTC $ Gain) for the quarter was approximately $4.1 billion, bringing the company closer to its annual target of $10 billion in revenue. The company has raised its long-term BTC Yield target from 15% to 25% and increased its BTC $ Gain target from $10 billion to $15 billion.
Strategy’s stock price opened yesterday with an increase of 6% to $403.88, closing at $381.60, but fell to $378.45 in after-hours trading. As of May 1, Strategy has risen approximately 32% this year. Bitcoin has dropped from its high of $108,000 on January 20 when Trump took office to around $75,000, a decline of up to 31%, but later rebounded to about $97,000 during the rally from April to May, yielding an annual increase of approximately 3.7%.
As of April 27, Strategy and its subsidiaries collectively hold 553,555 Bitcoins, with an average purchase price of about $68,459. At current prices, these Bitcoins are valued at approximately $53.7 billion.
Strategy President and CEO Phong Le stated in a report: Data Source