Company Strategy, previously known as MicroStrategy, announced plans to double its investment for Bitcoin acquisitions in its latest financial report, despite significant losses in the first quarter.
Company Financial Results
During the earnings call on May 1, Strategy reported revenues of $111.1 million for the first quarter, down 3.6% from the same quarter last year. The company experienced a net loss of $4.2 billion, approximately $16.49 per share, sharply exceeding analysts' forecast of a loss of 11 cents per share.
Capital Raising Plans
The company announced it will double its capital raising strategy to $84 billion for further Bitcoin purchases. Of this amount, $42 billion will be raised through equity, and $42 billion through fixed income. CFO Andrew Kang stated that the aim is to boost the yield to 25%.
Stock Performance and Bitcoin Holdings
Following the earnings announcement, Strategy's stock (MSTR) saw a slight increase, although this was erased in after-hours trading. Nonetheless, the company's shares are still up over 27% year-to-date. According to SaylorTracker, Strategy holds 553,555 BTC, making it the largest corporate holder of Bitcoin.
Despite its losses, Strategy continues to actively invest in Bitcoin, reflecting its confidence in the future of the cryptocurrency market.
