Saylor’s Strategy Doubles Capital Raise for Bitcoin Purchase to $84B Despite Record Loss

By: crypto news|2025/05/02 19:00:04
0
Share
copy
Michael Saylor’s firm, Strategy, has announced it is doubling its capital raising plan to $84 billion in an aggressive push to acquire more Bitcoin—even as the company posted a record $4.2 billion net loss in the first quarter of 2025.The loss stems from a recently adopted accounting rule requiring firms to value digital asset holdings like Bitcoin at market prices.Strategy, which owns approximately 554,000 BTC worth about $53 billion, adopted the rule in Q1 following its approval at the end of 2024.Strategy Files to Sell Additional $21B in Shares After Exhausting Previous OfferingThe Virginia-based company disclosed Thursday that it has filed to sell an additional $21 billion in common shares after depleting a previous program of the same size authorized in October.It also doubled its debt issuance target from $21 billion to $42 billion, leaving $14.6 billion remaining under its current authorization.The expanded programs are part of Strategy’s ongoing effort to finance Bitcoin acquisitions through equity and debt offerings.Since launching its at-the-market equity program, the firm has sold roughly $20.9 billion in shares, with only $128 million left available for sale.In an October statement, Strategy outlined its goal of raising $42 billion over three years through equity and fixed income instruments to increase its Bitcoin exposure beyond what traditional revenues could support.Previously, Strategy classified its Bitcoin as intangible assets, a designation that required it to record permanent impairments when prices fell while only recognizing gains upon sale.The new accounting approach brings more transparency but also amplifies short-term volatility in financial results.JUST IN: Michael Saylor's Strategy says it still has $57 billion left to raise to buy more #Bitcoin pic.twitter.com/3cgtX3vbWM— Bitcoin Magazine (@BitcoinMagazine) May 1, 2025In Q1 2025, Strategy reported revenue of $111 million, a 3.6% year-over-year decline. However, subscription services revenue rose sharply to $37.1 million, up 61.6% from the same period last year.Despite its roots in software, Strategy has repositioned itself as a leveraged proxy for Bitcoin exposure under the leadership of Saylor, its outspoken founder and executive chairman.The firm’s average purchase price for its Bitcoin holdings now stands at $68,459 per BTC as of April 28.Public Companies Boost Bitcoin Holdings by 16% in Q1 2025Publicly traded companies increased their Bitcoin holdings by 16.1% in the first quarter of 2025, signaling continued institutional interest in the leading cryptocurrency despite market volatility.According to crypto asset manager Bitwise, total corporate Bitcoin holdings climbed to approximately 688,000 BTC by the end of Q1, with companies adding 95,431 BTC over the three-month period.Bitwise reported the combined value of these holdings reached $56.7 billion, based on a Q1 closing price of $82,445 per Bitcoin—representing a 2.2% increase in value.More recently, healthcare technology firm Semler Scientific expanded its Bitcoin holdings with a fresh $10 million purchase, signaling a continued strategic pivot toward digital assets.The latest purchase brings the company’s total Bitcoin treasury to over 3,300 BTC, valued at approximately $300 million based on current market prices.The post Saylor’s Strategy Doubles Capital Raise for Bitcoin Purchase to $84B Despite Record Loss appeared first on Cryptonews.

You may also like

Tiger Research: What AI services do cryptocurrency companies offer?

Cryptocurrency giants like Binance and Coinbase have fully launched an AI defense battle: Driven by FOMO sentiment, leading platforms are accelerating the deep integration of AI agents into core businesses such as trading, security, and payments.

The war not only drives up oil prices but also causes Circle's stock price to soar

High interest rate expectations combined with the explosive growth of stablecoin infrastructure have led to Circle's stock price doubling in five weeks against the trend: Understanding the dual game of "macro interest rate trading" and "global payment foundation" behind the surge in one article.

When agents become consumers, who will rewrite the underlying logic of internet commerce?

Thirty years ago, due to the high cost of micropayments, the internet had no choice but to adopt an advertising model. Today, the technical threshold for micropayments is nearly zero, but trust has become the most expensive luxury. Whoever can bridge this gap will dominate the next generation of int...

AI Agents in Action Summit: March 31, Hong Kong Cyberport, focusing on the deep waters of AI implementation

Tomorrow, Hong Kong Cyberport will grandly open. The "AI Agents in Action" summit gathers top experts, directly addressing the real evolution of AI Agents from conceptual celebration to productization and large-scale commercial implementation.

29 Days In, What Are America’s Options on Iran?

The key is not in ground invasion but in the combination of striking capability and governance.

Flash Crash Down 97%+ with Ongoing Unlocking, WLD Completes $65 Million Off-chain Funding: Who Is Still Buying?

In the current deep bear market environment, being able to complete multi-million dollar token trades is quite rare.

Popular coins

Latest Crypto News

Read more