Strategy's Ambitious Bitcoin Strategy Yields Billion-Dollar Gains
By: Eliza Bennet
Strategy, a major entity known for its significant Bitcoin investments, has demonstrated remarkable results in its first quarter of 2025, posting a year-to-date Bitcoin (BTC) yield of 13.7% and generating Bitcoin gains totaling $5.8 billion as of April 28. The company's recent financial disclosures highlight its ambitious plan to expand its Bitcoin holdings further, positioning itself as a leading capital markets vehicle for Bitcoin exposure.
The company has strategically enhanced its full-year BTC Yield goal from 15% to 25%, and forecasts an increase in its Bitcoin gain projection from $10 billion to $15 billion. This strategic move aligns with its record-setting $21 billion at-the-market equity offering, which significantly bolstered its Bitcoin reserve by 301,335 BTC in just the first quarter alone. As a result, as of April 28, Strategy's total Bitcoin holdings have reached 553,555 BTC, procured at an accumulated cost of $37.9 billion, averaging about $68,459 per Bitcoin.
Strategy employs a three-prong performance indicator system: BTC Yield, BTC Gain, and BTC $ Gain. These metrics offer insight into the company's internal performance, though they are not based on standard accounting practices. As of the end of April, the BTC Yield was documented at 13.7%, pinpointing a Q1 figure of 11%. The company’s calculated BTC Gain was 49,131 BTC for the first quarter, which ascended to 61,497 BTC year-to-date. Despite a reported unrealized fair value loss of $5.9 billion for Q1 due to Bitcoin’s declining price, recovery in prices to $97,300 has suggested a substantial potential gain for the second quarter.
Acknowledging recent accounting adjustments, Strategy adopted the fair value accounting standard ASU 2023-08 for digital assets, which notably increased its retained earnings by $12.7 billion at the year's start. The accounting change reflects the firm's alignment of its reported net income more closely with Bitcoin market price fluctuations, aiming to maintain robust future performance targets.
Furthermore, Strategy plans to continue increasing its Bitcoin reserves aggressively, despite first-quarter losses, by raising an additional $21 billion expressly for Bitcoin accumulation. This plan bolsters its existing strategies, including a recent issuance of $2 billion in convertible senior notes and the completion of two preferred stock IPOs, Strike and Strife. These successful endeavors helped amass over $1.2 billion, contributing to an impressive $10 billion in net proceeds during the early months of 2025.
While Strategy’s internal KPIs serve as reflections of capital efficiency in Bitcoin collection, the company remains candid about their limitations, indicating that these metrics do not consider liabilities or dividends associated with preferred stock. Nonetheless, with the adjustments to its annual targets and adoption of fair value accounting standards, Strategy is determined to solidify its stronghold in the Bitcoin marketplace.
