Bitcoin Investment Strategy Loses $16.5B in Q1, Plans to Raise $21B for More Acquisitions

Strategy (MSTR), the business intelligence firm heavily invested in Bitcoin, has reported a significant $16.5 billion loss in the first quarter of 2025, primarily due to the slump in Bitcoin’s price. Despite this, the company remains committed to its long-term Bitcoin investment strategy and has announced plans to raise an additional $21 billion to further expand its digital asset holdings.

The major setback was attributed to Bitcoin’s market price decline during the quarter, which led to a large depreciation in the company’s Bitcoin holdings. The firm’s Bitcoin position, now valued at $53 billion, was a key contributor to the loss, but it remains confident in the asset’s future prospects.

Strategy’s traditional software business also showed mixed results in Q1, with a 3.6% drop in revenue to $111.1 million, down from $115.2 million in Q1 2024. However, its subscription services saw notable growth, reaching $37.1 million, up from $23 million in the same period last year.

The firm has remained steadfast in its Bitcoin investment strategy, even after the losses, citing the asset’s long-term potential. Over the past quarter, the company’s Bitcoin holdings yielded a return of 11%, despite the price volatility.

In a move to strengthen its position in the cryptocurrency market, Strategy has raised its Bitcoin yield forecast to 25%, from an initial target of 15%. It now expects to see a $15 billion gain from Bitcoin this year, revising its earlier forecast of $10 billion.

The company currently holds 553,555 Bitcoin, purchased at an average cost of $68,459 each. Bitcoin’s current price of $96,547 is a positive indicator of recovery, despite the initial Q1 drop.

CEO Phong Le emphasized that the firm’s aggressive stance in Bitcoin acquisition remains intact, despite the short-term volatility: “We are confident in Bitcoin’s ability to recover and grow, and our strategic acquisitions will continue to drive long-term value.”

Shares of Strategy saw a slight rebound in after-hours trading, bolstered by the company’s commitment to expanding its Bitcoin holdings, making it a prominent player in the digital asset space.