Despite reporting a staggering $4.2 billion loss for the first quarter of the year, Strategy — the company known for aggressively accumulating Bitcoin — remains undeterred. The firm has announced plans to raise another $42 billion, doubling down on its commitment to Bitcoin as a core treasury asset.
Massive Loss Driven by Bitcoin Price Volatility
Strategy’s Q1 loss, which amounts to $16.49 per share, was primarily the result of a sharp decline in the price of Bitcoin during the quarter. The company was forced to mark down the value of its Bitcoin holdings by $5.9 billion, reflecting the impact of crypto market volatility on its financial statements.
The company continues to operate a legacy software division, which posted revenue of $111.1 million, down 3.6% year-over-year. While still a contributor to total income, the software arm now pales in comparison to Strategy’s crypto treasury operations.
Doubling the Ambitious ’21/21 Plan’
Earlier this year, Strategy launched its “21/21 Plan,” an ambitious initiative to raise $42 billion, half through equity issuance and half through convertible debt, with the explicit goal of purchasing Bitcoin. Now, following a wave of additional Bitcoin acquisitions and a still-strong conviction in the asset’s long-term potential, the company plans to double down.
Strategy now intends to raise another $42 billion—$21 billion through new share offerings and $21 billion via additional debt issuance—to significantly increase its Bitcoin holdings.
This would bring the company’s total capital raise under the program to a staggering $84 billion, a move that, if successful, would make Strategy not just the largest public holder of Bitcoin by a wide margin, but potentially one of the largest single holders in the world—rivaling even national reserves.
BTC Yield: Strategy’s Key Performance Indicator
To measure its performance beyond traditional earnings, Strategy has introduced a novel metric: BTC Yield. This figure measures the growth in the number of Bitcoin per share, essentially serving as a proxy for how effectively the company is converting capital into Bitcoin on a per-share basis.
-
In Q1 2025, Strategy achieved a BTC Yield of 11%.
-
Year-to-date, the figure has risen to 13.7%.
-
The company has set a bold target of 25% BTC Yield for the full year.
This metric is designed to appeal to long-term Bitcoin believers who value accumulation of the asset over short-term fiat-based profits.
Current Holdings and Cost Basis
As of today, Strategy holds an astonishing 553,555 BTC, currently valued at approximately $52 billion. The company’s average purchase price stands at $68,459 per Bitcoin, implying a total acquisition cost of nearly $38 billion. Despite recent volatility, the company remains in profit on its Bitcoin position.
Strategic Implications and Market Reactions
If successful, this expanded capital raise would cement Strategy’s place at the center of Bitcoin’s institutional narrative. While some investors remain skeptical of such a concentrated treasury strategy—particularly in light of Q1’s massive loss—others view the firm as a pioneering “Bitcoin-native” corporation, one that could benefit enormously in a future where Bitcoin becomes a global reserve asset or gains broader corporate adoption.
In light of increased regulatory clarity in the U.S., and the rise of spot Bitcoin ETFs, Strategy’s aggressive moves could prove prescient—though not without considerable risk.
