financial results and growth of the Bitcoin portfolio

The financial results for the first quarter of 2025 of Strategy highlight strong momentum in the cryptocurrency sector, with particular focus on Bitcoin portfolio management. As of April 28, 2025, the company holds a portfolio of 553,555 bitcoin, for a total investment of 37.90 billion dollars, with an average cost per bitcoin of approximately 68,459 dollars.

In 2025 Year To Date (YTD), the company achieved a significant “BTC Yield” of 13.7%, close to 90% of the initial annual target of 15%. At the same time, the “BTC Gain” reached 61,497 bitcoins, with an economic result of 5.8 billion dollars in unrealized gains, corresponding to 58% of the set goal. This positive trend has driven the company to increase the targets to 25% of “BTC Yield” and 15 billion dollars of “BTC $ Gain” for 2025.

The CEO Phong Le emphasized that the excellent progress in the enhancement of Bitcoin results from an effective strategy and the adoption of the “fair value” evaluation method on digital reserves. This approach has led to a cumulative increase of 12.7 billion dollars in the company’s net assets.

Strategy: evaluation and fluctuations of the Bitcoin portfolio

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Despite the unrealized loss of about 5.9 billion dollars in the first quarter, caused by a Bitcoin quotation around 82,445 dollars, the current value close to 97,300 dollars per bitcoin indicates a potential gain of about 8 billion in the current quarter. This dynamic highlights the importance of volatility in the cryptocurrency market.

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As of March 31, 2025, the 528,185 BTC held represent a total market value of 43.5 billion dollars, with an original cost of 35.6 billion dollars. Additionally, the average price per bitcoin held is 67,457 dollars, significantly lower than the current market value.

Capital and financial markets: issuances and collections

In the first four months of the year, Strategy significantly expanded its capital base, raising approximately 10 billion dollars through various financial operations:

• A record issuance of 12,624,595 ordinary shares for approximately 6.6 billion dollars, divided between the first quarter and April 2025.
• An issuance of Senior Convertible Notes for 2 billion dollars, with a 0% rate and maturity in 2030.
• Important successes in the IPO of perpetual preferred shares, with 563 million dollars raised in January and an additional 710 million in March under the names “Strike” and “Strife”.

The company has also approved the increase of the total number of authorized common and preferred shares, thus improving future flexibility in the bull market.

The full conversion and redemption of the financial instruments “2027 Convertible Notes” have extinguished or converted all of Strategy’s long-term debt obligations, improving the financial structure.

Economic indicators: revenues, costs, and profits

The first quarter of 2025 saw total revenues of 111.1 million dollars, a slight decrease of 3.6% compared to the same period in 2024. However, key components such as subscription revenues grew by 61.6%, reaching 37.1 million dollars, while product licenses and subscription revenues recorded an increase of 23.6%, reaching 44.4 million.

On the contrary, support revenues fell by 16.2% to 52.5 million, along with other revenues decreasing by 15%. Despite this unevenness, the gross profit remained at 77.1 million dollars, with a profit margin of 69.4%, slightly lower compared to 74.0% in the first quarter of 2024.

The operating expenses have experienced a significant increase, reaching approximately 6 billion dollars, primarily due to losses on digital assets. This resulted in an operating loss of about 5.921 billion dollars and a net loss of 4.217 billion, equivalent to 16.49 dollars per diluted share.

However, liquidity has improved, with a balance of 60.3 million dollars in cash and equivalents at the end of the quarter, compared to 38.1 million dollars at the end of 2024.

Summary of developments and future prospects

In summary, Strategy presents itself as a key player in the Bitcoin market, with a continuously expanding portfolio and a capitalization strategy that takes advantage of favorable market dynamics. The increase in return and profit targets indicates confidence in the potential of the bull and bear cryptocurrency market.

Despite the unrealized losses recorded in the first quarter, the adoption of the fair value method and the subsequent growth in the price of Bitcoin offer multiple opportunities to improve results over the course of 2025.

Furthermore, the solid capital raising through common and preferred shares, along with the timely management of convertible financial instruments, confirms a prudent and dynamic financial approach.

Investors and the market more generally are called to monitor the evolution of Bitcoin prices and Strategy’s ability to convert potential gains into real performance, especially in a context characterized by volatility and disruptive opportunities.  

Finally, it is recommended to follow the official quarterly updates to evaluate in detail the next strategic moves and the consequent impact on the company’s results.