StrategyTM (Nassaq: STRU/STRK/STRF)

Strategy (Nasdaq: MSTR/STRK/STRF) on Thursday reported strong first-quarter financial results that saw the company expand its Bitcoin holdings to 528,185 BTC and commence a capital-intensive strategy to further accumulate the cryptocurrency.

The company’s BTC Yield reached 11.0% in Q1 and 13.7% year-to-date as of April 28, placing it on course to exceed the initial annual target of 15%. As a result, Strategy has raised its 2025 BTC Yield goal to 25%.

Moreover, Strategy achieved a BTC $ Gain of $5.8 billion in the first four months of 2025, realizing 58% of the annual $10 billion target. This has led to a revision of the 2025 BTC $ Gain goal to $15 billion.

Strategy also noted that it completed a record $21 billion at-the-market (ATM) common stock offering in Q1 to fund the company’s capital return plans.

Capital Raises Fuel Bitcoin Accumulation

Strategy significantly broadened its capital base in Q1 through a combination of equity offerings and convertible notes. These included:

A $1 billion offering of convertible senior notes due 2028 at a 3.00% interest rate, completed in January.

An announced intent to sell up to $3 billion of common stock in at-the-market offerings over the next 12 months, kicking off with a $1 billion tranche at an average price of $207.84 per share.

An additional capital raising of $4 billion through a private placement of convertible preferred stock to a single investor at an offering price of $205 per share, with a 5.00% annual dividend and a 7.00% interest rate on the principal amount of the notes.

As of January 1, 2025, Strategy adopted ASC 350, switching to fair value accounting for its digital assets. This change resulted in a $12.7 billion uplift in retained earnings. However, due to a quarter-end Bitcoin price of $82,445, the company recorded a $5.9 billion unrealized fair value loss on digital assets in Q1.

At the time of writing, Bitcoin is currently trading at $$96,686.76,, indicating that Strategy anticipates a substantial digital asset fair value gain of approximately $8.0 billion in Q2 2025.

The company also disclosed that its Board authorized the creation of an additional 9 billion shares of class A common stock and 995 million shares of preferred stock. This authorization brings the total authorized shares to 10.3 billion for class A common stock and 1.005 billion for preferred stock.

The company also announced that it is increasing its 2025 capital plan to $42 billion for both equity and fixed income to fund bitcoin purchases.