Strong BTC Performance, Massive Unrealized Loss

In its May 1 earnings release, the firm said its Bitcoin yield translated to more than 61,000 BTC, valued at approximately $5.8 billion. CFO Andrew Kang stated that the company now aims for a 25% Bitcoin yield and $15 billion in gains by year’s end.

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However, Strategy reported $111.1 million in revenue, down 3.6% year-over-year and about 5% below analyst expectations. Its net loss hit a staggering $4.2 billion, or $16.49 per share, far worse than the expected $0.11 per-share loss. This was mainly due to a $5.9 billion unrealized loss on its Bitcoin holdings.

New Capital, Stock Slightly Up

To continue purchasing Bitcoin, Strategy announced a $21 billion stock offering, a bold move despite its Q1 losses.

Shares of MSTR closed 0.39% higher at $381.60 on May 1, slipping slightly to $378.50 in after-hours trading. The stock is up 31.5% year-to-date but remains below its November high of $470.

Since 2020, Strategy has acquired more than 550,000 BTC, with an average price of around $68,500. The firm’s Bitcoin holdings now exceed $53 billion in market value.

Strategy remains the largest Bitcoin-holding public company. Public firms hold over $73 billion in BTC, while institutional funds manage an additional $128 billion, per BitcoinTreasuries.NET.

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The post Strategy Misses Estimates Despite 14% YTD Bitcoin Yield in Q1 appeared first on Coin Engineer.