Despite a 13.7% return on its Bitcoin holdings, Strategy fell short of analysts’ profit and loss expectations. According to the first-quarter report, the firm earned $5.8 billion from the leading cryptocurrency since the beginning of the year.
Chief Financial Officer Andrew Kang announced an increase in annual targets: the portfolio’s return is expected to rise to 25%, with profits reaching $15 billion.
The company’s revenue fell by 3.6% year-on-year to $111.1 million. The net loss amounted to $4.2 billion ($16.49 per share), sharply contrasting with Wall Street’s forecast of an $0.11 loss per share.
Strategy’s operating expenses in the first quarter surged nearly 2000% year-on-year to $6 billion, primarily due to an unrealized loss on Bitcoin amounting to $5.9 billion.
The firm also announced a $21 billion stock issuance to finance new purchases of the leading cryptocurrency.
Despite MSTR shares falling to $380.11 after the close of trading on May 1, the company’s stock has risen by 31.76% since the start of the year (data from Google Finance).
According to BitcoinTreasuries, at the time of writing, Strategy holds 553,555 BTC (2.63% of issuance) valued at $53.38 billion.
Back in April, the company reported unrealized losses amounting to $5.91 billion for the first quarter of 2025.