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Strategy 8-K Report, Financial Results (May 1, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 1, 2025
Period End
May 1, 2025
In the record · 2016–202610-K1110-Q338-K265

MSTR filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 265 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jul ’20Jul ’20
  2. Material agreement8-K · Sep ’22Sep ’22
  3. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed May 1, 2025. Cited figures are marked; the original filing is the authoritative source.

Strategy (filed as MicroStrategy Incorporated d/b/a Strategy) reported first-quarter 2025 results in a press release attached as Exhibit 99.1 to this Form 8-K.

The company recorded a net loss of $4.217 billiona, or $16.49 per diluted common share, versus a net loss of $53.1 million a year earlier. The loss was driven by a $5.906 billion unrealized loss on digital assets, the first period in which the company applied fair value accounting to its bitcoin holdings under ASU 2023-08. Total revenues were $111.1 million, down from $115.2 million, and the Software Business generated segment net income of $18.4 million.

The company held approximately 528,185 bitcoins at March 31, 2025, with an original cost basis of $35.6 billionb and a market value of $43.5 billion at a quarter-end price of $82,445. The adoption of fair value accounting produced a $12.7 billion cumulative increase to the opening balance of retained earnings as of January 1, 2025. Capital raising was substantial: the company reported net proceeds of about $7.7 billion in the quarter, mainly from common stock at-the-market sales, a 2030B convertible note issuance, and two perpetual preferred stock IPOs (STRK and STRF).

The release also announces a new $21 billionc at-the-market common stock offering and raises the company's 2025 targets for its BTC Yield KPI (from 15% to 25%) and BTC $ Gain KPI (from $10 billion to $15 billion). The release states that these KPIs are supplemental, are not GAAP measures, and are not indicators of the trading price or operating performance of the company's securities.

02—Key points

Key Highlights

  1. Net loss of $4.217 billion ($16.49 per diluted share) for Q1 2025, compared with a net loss of $53.1 million in Q1 2024, driven by a $5.906 billion unrealized loss on digital assets.
  2. Total revenues of $111.1 million, down from $115.2 million a year earlier; subscription services revenue rose to $37.1 million from $23.0 million.
  3. Bitcoin holdings of approximately 528,185 bitcoins at March 31, 2025, with a carrying value of $43.5 billion against an original cost basis of $35.6 billion.
  4. Adoption of fair value accounting (ASU 2023-08) added $12.7 billion to the opening retained earnings balance as of January 1, 2025.
  5. Net proceeds of approximately $7.7 billion in Q1 2025, mainly from common stock ATM sales ($4.4 billion), a $2.0 billion 0% 2030B convertible note issuance, and perpetual preferred stock IPOs.
  6. A new $21 billion at-the-market common stock offering was announced, and the 2025 BTC Yield target was raised from 15% to 25% and the BTC $ Gain target from $10 billion to $15 billion.
  7. Cash and cash equivalents were $60.3 million at March 31, 2025, up from $38.1 million at December 31, 2024.

03—Questions

Frequently Asked Questions

  1. Why was the net loss so large in Q1 2025 when the company's software business was profitable?

    The loss came almost entirely from the Corporate & Other category, which recorded a $5.906 billion unrealized loss on digital assets. The release states that the Software Business reported segment net income of $18.4 million, while Corporate & Other reported a net loss of $4.236 billion. This was the first period in which the company applied fair value accounting to its bitcoin holdings, which requires gains and losses on bitcoin to flow through net income.

  2. What did the company's bitcoin holdings look like at quarter-end?

    As of March 31, 2025, the company held approximately 528,185 bitcoins, with an original cost basis of $35.6 billion and a carrying value and market value of $43.5 billion. The release cites a quarter-end market price of $82,445 per bitcoin, and the average cost per bitcoin was approximately $67,457.

  3. How did the company fund its bitcoin purchases in the quarter?

    The company received net proceeds of about $7.7 billion in Q1 2025. The release states that bitcoin purchases in the quarter were funded with $4.37 billion from common stock at-the-market sales, $1.99 billion from the 2030B Convertible Notes, $593.7 million from the Perpetual Strike Preferred Stock IPO and ATM program, and $710.0 million from the Perpetual Strife Preferred Stock IPO.

  4. What new capital-raising and target changes did the company announce?

    The company announced a new $21 billion at-the-market common stock equity offering. It also raised its 2025 BTC Yield target from 15% to 25% and its 2025 BTC $ Gain target from $10 billion to $15 billion. The release notes that BTC Yield, BTC Gain and BTC $ Gain are supplemental KPIs, not GAAP measures, and are not predictive of the trading price of the company's securities.

04—Continue

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