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Strategy Reports $5.91 Billion Loss, Launches $21 Billion Equity Offering for Bitcoin Expansion

The largest corporate Bitcoin holder increases its BTC targets as Bitcoin nears $100,000, despite financial challenges and declining software revenue.

Representations of cryptocurrency Bitcoin are seen in this illustration taken November 25, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • Strategy now holds 553,555 Bitcoin, valued at approximately $53.5 billion, solidifying its position as the largest corporate Bitcoin reserve holder.
  • The company reported a $5.91 billion first-quarter loss due to unrealized write-downs of its Bitcoin holdings under fair-value accounting rules.
  • Strategy announced a $21 billion at-the-market equity offering to fund further Bitcoin acquisitions, raising its Bitcoin gain target to $15 billion for 2025.
  • Legacy software revenue fell 3.6% year-over-year to $111.1 million, missing consensus estimates of $116.3 million, as the firm continues shifting focus to Bitcoin.
  • Bitcoin prices have surged above $97,000, boosting Strategy’s stock, which reached a year-to-date high of $403 per share.