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Mar 31, 2025
MicroStrategy Q1 2025 Earnings Report
Strategy reported a substantial net loss due to fair value accounting of digital assets.
Key Takeaways
Strategy incurred a $4.2 billion net loss in Q1 2025, largely driven by unrealized losses from Bitcoin revaluation under new accounting rules. However, it significantly expanded its Bitcoin holdings and raised $7.7 billion in capital.
Revenue by Segment
Forward Guidance
Strategy raised its 2025 targets for BTC yield and dollar gain, driven by strong capital markets execution and Bitcoin's upward momentum.
Positive Outlook
- BTC Yield target increased from 15% to 25% for FY2025
- BTC $ Gain target raised from $10B to $15B
- Successful execution of $21B ATM stock program
- Positive fair value trajectory into Q2 with BTC around $97,300
- Record growth in BTC holdings to over 553,000 BTC
Challenges Ahead
- Massive unrealized loss of $5.9B due to BTC fair value adjustment
- Net loss of $4.2B despite revenue growth in subscriptions
- Operating expenses surged nearly 20x YoY due to accounting changes
- Gross margin declined from 74% to 69.4% YoY
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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