Due to the adoption of accounting changes, the company is required to value the large amount of Bitcoin it holds at market price, resulting in MicroStrategy recording an unrealized loss of $5.9 billion in the first quarter. Subsequently, the company directly doubled its financing plan from the "21/21 Plan" to the "42/42 Plan" to raise more funds to purchase Bitcoin.
Strategy Season 1 Bitcoin loss of 5.9 billion dollars
As of March 31, 2025, MicroStrategy's digital assets include approximately 528,185 Bitcoins, with an original cost basis and market value of $35.6 billion and $43.5 billion, respectively, reflecting an average cost of about $67,457 per Bitcoin.
MicroStrategy has adopted the new accounting system ASU 2023-08 starting this year, recording an unrealized loss of 5.9 billion dollars in the first quarter, as the market price of Bitcoin declined from 93,390 to 82,445 dollars in the previous quarter.
But CFO Andrew Kang stated that the current Bitcoin price of about $97,300 would imply a fair value gain of approximately $8 billion for the second quarter to date.
The "21/21 Plan" directly doubles to become the "42/42 Plan".
MicroStrategy announced the "21/21 Plan" last October, aiming to raise $42 billion in capital over the next three years, which includes $21 billion in equity and $21 billion in fixed income securities. This plan will further support its acquisition of Bitcoin as part of its reserve asset strategy.
During the three months ending March 31, 2025, MicroStrategy has raised a net income of $7.7 billion through the issuance of new shares, convertible bonds, and preferred stocks.
In the span of six months, the Strategy is no longer able to meet the scale of the "21/21 Plan". In this financial report, it has been announced that it will directly double to the "42/42 Plan" and will approve amendments to the company's articles of association in January 2025, increasing the authorized amount of Class A common stock from 330,000,000 shares to 10,330,000,000 shares, and increasing the authorized amount of preferred shares from 5,000,000 shares to 1,005,000,000 shares.
Under the new "42/42 Plan", Strategy can also issue 21.1 billion MSTR common shares, as well as a total of $35.6 billion including convertible bonds and preferred shares STRK and STRF.
More than 55 million institutional and individual investors have purchased MSTR.
Since last year, Bitcoin has been rising continuously, and with Trump's administration favoring the relaxation of cryptocurrency regulations, many companies have followed the strategy of Bitcoin reserve. A total of 78 publicly listed companies worldwide, including mining companies, pharmaceutical firms, and advertisers, are buying Bitcoin to replace their cash reserves.
Strategy also proudly stated that as of the first quarter, over 55 million institutional and individual investors have purchased MicroStrategy stock (MSTR), including BlackRock, Vanguard Group, Fidelity, and the Norwegian Sovereign Fund.
(Strategy leads the trend, a detailed article on Bitcoin reserve strategy company investment guide)
This article discusses MicroStrategy's Bitcoin strategy, which incurred a loss of $5.9 billion in Q1. The "21/21 plan" has directly doubled to become the "42/42 plan" and first appeared in Chain News ABMedia.
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MicroStrategy's Bitcoin strategy lost $5.9 billion in Q1, and the "21/21 plan" directly doubled to become the "42/42 plan".
Due to the adoption of accounting changes, the company is required to value the large amount of Bitcoin it holds at market price, resulting in MicroStrategy recording an unrealized loss of $5.9 billion in the first quarter. Subsequently, the company directly doubled its financing plan from the "21/21 Plan" to the "42/42 Plan" to raise more funds to purchase Bitcoin.
Strategy Season 1 Bitcoin loss of 5.9 billion dollars
As of March 31, 2025, MicroStrategy's digital assets include approximately 528,185 Bitcoins, with an original cost basis and market value of $35.6 billion and $43.5 billion, respectively, reflecting an average cost of about $67,457 per Bitcoin.
MicroStrategy has adopted the new accounting system ASU 2023-08 starting this year, recording an unrealized loss of 5.9 billion dollars in the first quarter, as the market price of Bitcoin declined from 93,390 to 82,445 dollars in the previous quarter.
But CFO Andrew Kang stated that the current Bitcoin price of about $97,300 would imply a fair value gain of approximately $8 billion for the second quarter to date.
The "21/21 Plan" directly doubles to become the "42/42 Plan".
MicroStrategy announced the "21/21 Plan" last October, aiming to raise $42 billion in capital over the next three years, which includes $21 billion in equity and $21 billion in fixed income securities. This plan will further support its acquisition of Bitcoin as part of its reserve asset strategy.
During the three months ending March 31, 2025, MicroStrategy has raised a net income of $7.7 billion through the issuance of new shares, convertible bonds, and preferred stocks.
In the span of six months, the Strategy is no longer able to meet the scale of the "21/21 Plan". In this financial report, it has been announced that it will directly double to the "42/42 Plan" and will approve amendments to the company's articles of association in January 2025, increasing the authorized amount of Class A common stock from 330,000,000 shares to 10,330,000,000 shares, and increasing the authorized amount of preferred shares from 5,000,000 shares to 1,005,000,000 shares.
Under the new "42/42 Plan", Strategy can also issue 21.1 billion MSTR common shares, as well as a total of $35.6 billion including convertible bonds and preferred shares STRK and STRF.
More than 55 million institutional and individual investors have purchased MSTR.
Since last year, Bitcoin has been rising continuously, and with Trump's administration favoring the relaxation of cryptocurrency regulations, many companies have followed the strategy of Bitcoin reserve. A total of 78 publicly listed companies worldwide, including mining companies, pharmaceutical firms, and advertisers, are buying Bitcoin to replace their cash reserves.
Strategy also proudly stated that as of the first quarter, over 55 million institutional and individual investors have purchased MicroStrategy stock (MSTR), including BlackRock, Vanguard Group, Fidelity, and the Norwegian Sovereign Fund.
(Strategy leads the trend, a detailed article on Bitcoin reserve strategy company investment guide)
This article discusses MicroStrategy's Bitcoin strategy, which incurred a loss of $5.9 billion in Q1. The "21/21 plan" has directly doubled to become the "42/42 plan" and first appeared in Chain News ABMedia.