Increased Bitcoin Acquisition Strategies Proposed toSecure $21 Billion Investment After Q1 Deficit
Bustin' Bitcoin Blocks: Strategy's Wild Ride in Q1 2025
Strap in, 'cause we're diving headfirst into Strategy's rollercoaster ride of a first quarter in 2025! The Tysons Corner-based bigwigs, formerly known as MicroStrategy, took a hit, losing a whopping $16.49 per common share. But fear not, Bitcoin believers, 'cause the leading Bitcoin treasury firm ain't about to give up that easy!
Their crypto crash didn't come out of nowhere - it was triggered by Bitcoin's gotta-fall phase during Q1, as announced by Strat on Thursday, after the markets had wrapped up for the night. The losses in their Bitcoin holdings for the period piled up to a whopping $5.9 billion. Talk about a knee-slapper!
Did they dust themselves off and head home? Nah, not if co-founder and Executive Chairman Michael Saylor had anything to say about it. He threw out a new $21 billion common stock equity offering into the ring, promising that the funds would fuel the continuation of their Bitcoin binge.
"Alright, alright, alright," said Phong Le, Strategy's president and CEO. "With over 70 public firms around the globe buying into the Bitcoin treasury standard, we're the forerunners in this crazy-town! We're pioneers, y'all!"
Le didn't stop there. Strategy's been in the "sell shares to stack satoshis" game for some time now. Since they started their at-the-money equity offering program, they've hocked approximately $20.9 billion worth of common shares, leaving only around $128 million in shares to peddle.
Remember when they said they planned to raise $42 billion through equity and fixed income sales over the next three years to buy more Bitcoin than they could without it? Well, hold onto your hats, 'cause that's what they're doing!
For the quarter, Strategy's revenues slid 3.6% year-over-year, reaching $111 million. But fear not, their subscription services saw a significant increase, surging to $37.1 million, marking a stunning 61.6% increase.
Strategy started out in software development, but they've made it pretty dang clear that their real love is Bitcoin. After acquiring around 554,000 BTC (worth a cool $53 billion as of current prices), the company confirmed that they nabbed their Bitcoins at an average cost of $68,459 as of April 28.
Le brushed off the losses, boasting, "We nailed it with our $21 billion common stock ATM, adding 301,335 BTC to our balance sheet while simultaneously achieving a 50% increase in MSTR share price during the same period."
Strategy ended the day with a minor gain, climbing a few fractions of a percentage point to trade at $381.60, according to Yahoo Finance. Ain't no party like a tech stocks party, 'cause a tech stocks party gets you to $403!
As for Bitcoin, it was fluttering around $96,600, up 2.1% in the past 24 hours. The largest digital asset by market cap had crept up 13% over the past month after taking a dive from late January through early April.
Fun fact: Edited by young gun Sebastian Sinclair! Stay in the loop with the Daily Debrief Newsletter to keep up with Strategy and their Bitcoin adventure!
- Strategy, the leading Bitcoin treasury firm, announced a new $21 billion common stock equity offering, aiming to continue their Bitcoin buying spree.
- The company's president and CEO, Phong Le, highlighted that over 70 public firms worldwide have adopted the Bitcoin treasury standard, with Strategy leading the way.
- Despite a whopping loss of $5.9 billion in Bitcoin holdings during Q1 2025, Strategy still holds a substantial amount of Bitcoin (around 554,000 BTC) on their balance sheet.
- Bitcoin, the largest digital asset by market cap, saw a 13% increase over the past month, currently trading around $96,600, after a dip from late January through early April.
