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MicroStrategy (NasdaqGS:MSTR) has reported a significant net loss of approximately US$4.2 billion for the first quarter of 2025, a substantial increase compared to a loss of US$53 million in the same period of 2024.
The primary driver of this large net loss is an unrealized fair value loss on its digital assets (Bitcoin holdings) amounting to US$5.9 billion. This reflects the volatility of cryptocurrency investments and the impact of the company’s adoption of fair value accounting for its Bitcoin holdings, which took effect on January 1, 2025.
Despite this accounting loss, MicroStrategy remains committed to its Bitcoin strategy. As of March 31, 2025, the company held approximately 528,185 bitcoins with a market value of around US$43.5 billion. Its average cost per bitcoin was approximately US$67,457.
In Q1 2025, MicroStrategy continued to actively acquire Bitcoin. The company successfully executed a US$21 billion at-the-market (ATM) common stock equity offering, which allowed it to add 301,335 BTC to its balance sheet. This significant capital raise also contributed to a 50% increase in MSTR’s share price during the quarter.
The company’s software revenues for Q1 2025 were approximately US$111.1 million, a slight decrease from Q1 2024. However, subscription services revenues saw a significant increase of 61.6% year-over-year.
Looking ahead, MicroStrategy has increased its 2025 “BTC Yield” target from 15% to 25% and its “BTC $ Gain” target from US10 billion to US15 billion, indicating its continued strong conviction in its Bitcoin strategy.

Video courtesy of StockInvestorDaily

Video courtesy of StockInvestorDaily