MicroStrategy Goes All In on Bitcoin, Aiming for 25% Yield
Bitcoin Generates 13.7% Yield in Q1 2025, Despite Failing Wall Street Projections
Dive into the latest financials of MicroStrategy, the Bitcoin-focused company that's not backing down from its aggressive Bitcoin acquisition strategy.
Quantifying the Bitcoin Bet
MicroStrategy, under the leadership of Michael Saylor, released its Q1 2025 earnings, showcasing a 13.7% YTD yield on Bitcoin holdings, albeit missing Wall Street's expectations. The company's Bitcoin investments have translated into a gain exceeding 61,000 BTC, worth around $5.8 billion.
MicroStrategy's CFO, Andrew Kang, revealed the company's ambition to push its Bitcoin yield target for 2025 to 25%, aiming for a Bitcoin gain of $15 billion. The firm fell short of analyst estimates for the quarter, with revenue declining by 3.6% to $111.1 million.
A Bump in the Road - The Unrealized Loss
While MicroStrategy's Bitcoin strategy continues its charge, the firm experienced a hefty unrealized loss of $5.9 billion on its Bitcoin holdings during Q1. Operating expenses surged almost 2,000% year-on-year, primarily due to this loss.
Still Committed, Still Growing
In spite of these setbacks, MicroStrategy remains steadfast in its Bitcoin-centric approach. Plans are underway to issue an additional $21 billion worth of stock to finance future Bitcoin purchases. The company's stock, MSTR, finished May 1 trading at $381.60, with minor after-hours dips. Since initiating its Bitcoin acquirement drive in 2020, MicroStrategy has accumulated over 550,000 BTC, averaging approximately $68,500 per Bitcoin. The current valuation of its Bitcoin treasury stands at a whopping $53 billion, making it the largest corporate Bitcoin holder.
Subscription Services Shining Light Amid Tumult
While losses were incurred due to Bitcoin's volatile market movements, the company's subscription services revenues showed strong growth, surging 61.6% year-over-year to $37.1 million.
"With over 70 public companies worldwide now adopting a Bitcoin treasury standard, we are proud to be leading the charge," said Phong Le, president and CEO of MicroStrategy, in the earnings statement.
The Road Ahead
Since its equity and fixed income sales plan announcement in October 2024, MicroStrategy successfully executed a $21 billion common stock ATM, increasing its Bitcoin holdings by 301,335 BTC, and boosting its share price by 50%. Bitcoin was trading at around $96,600 as of the report, up 2.1% over the past day and 13% over the past month.
[1] [Enrichment Data]: MicroStrategy's current financial strategy revolves around aggressive Bitcoin acquisitions and ambitious yield targets in 2025. As of April 28, 2025, MicroStrategy holds 553,555 bitcoins acquired at a total cost of $37.90 billion, averaging about $68,459 per bitcoin. In terms of financial performance, MicroStrategy achieved a 13.7% "BTC Yield" year-to-date in 2025 and recorded a "BTC Gain" of 61,497 bitcoins (translating to $5.8 billion in Bitcoin dollar gains). The company has raised its 2025 targets for Bitcoin yield from 15% to 25% and its Bitcoin dollar gain target from $10 billion to $15 billion. To support further Bitcoin acquisitions or expansion of its strategy, MicroStrategy announced a new $21 billion at-the-market (ATM) common stock equity offering.
[2] [Enrichment Data]: As of May 1, 2025, MicroStrategy's Bitcoin treasury is valued at over $53 billion, making it the largest corporate holder of Bitcoin. Public companies collectively hold upward of $73 billion worth of Bitcoin, with institutional funds holding approximately $128 billion more. MicroStrategy's approach positions it as a highly leveraged proxy on Bitcoin price movements, reflecting CEO Michael Saylor's advocacy for Bitcoin as a superior strategic treasury asset compared to bonds, equities, and cash.
- MicroStrategy's financial strategy is centered around aggressive Bitcoin acquisitions, aiming for a 25% yield in 2025.
- The company's Bitcoin holdings, currently worth over $53 billion, make it the largest corporate Bitcoin holder.
- MicroStrategy's commitment to Bitcoin investing has seen it amass over 550,000 Bitcoin at an average price of approximately $68,500 each.
