Strategy Unveils $21B Stock Offering to Amplify Bitcoin Holdings Amid Q1 Loss

Strategy Inc, a major corporate advocate for cryptocurrency investment, announced a bold $21 billion stock offering Thursday in a move to dramatically expand its Bitcoin holdings, even as it reported a first-quarter loss.

The Virginia-based firm, widely known for its aggressive Bitcoin accumulation strategy, said proceeds from the offering will be used to purchase additional Bitcoin and for general corporate purposes. The announcement follows a reported net loss of $53.1 million for the first quarter, primarily due to non-cash digital asset impairment charges amid market volatility.

“This offering reflects our continued commitment to Bitcoin as a long-term store of value,” said Strategy Executive Chairman Michael Saylor in a statement. “We view this as a strategic capital raise to reinforce our position in what we believe is the future of money.”

Despite the quarterly loss, Strategy appears undeterred in its pursuit of Bitcoin as a core asset. The company currently holds more than 214,400 Bitcoins—worth over $13 billion at recent market prices—making it the largest corporate holder of the cryptocurrency.

Saylor, who transitioned from CEO to executive chairman in 2022 to focus on Bitcoin acquisition, has long defended Bitcoin as superior to cash or gold. The latest capital move signals Strategy’s confidence in Bitcoin’s long-term potential despite recent regulatory uncertainty and price fluctuations.

“This is an unprecedented move in terms of scale and ambition,” said Meltem Demirors, chief strategy officer at CoinShares, a digital asset investment firm. “They’re effectively doubling down at a time when institutional interest in Bitcoin is climbing but remains cautious due to macroeconomic headwinds.”

Strategy’s stock (Nasdaq: STRY) initially dipped 3.7% in after-hours trading following the announcement, as some investors expressed concern over dilution and the risks tied to Bitcoin’s notorious volatility.

“While I admire their conviction, issuing $21 billion in equity to buy a speculative asset is a high-risk bet,” said Dan Ives, senior equity analyst at Wedbush Securities. “It’s a reminder that Strategy is more of a crypto proxy than a traditional tech firm.”

The firm’s Q1 earnings report revealed that its revenue remained relatively stable at $134.5 million, though its digital asset impairment losses—triggered by Bitcoin’s dip below $60,000 in March—were the primary contributor to the quarterly red ink.

Strategy’s aggressive approach reflects a broader trend of institutional engagement with Bitcoin, though few companies have matched its level of exposure. Tesla, Block Inc., and Coinbase also hold Bitcoin on their balance sheets, but to a much lesser extent.

The announcement comes as the Securities and Exchange Commission continues to scrutinize crypto-related financial instruments and disclosures. Strategy has previously stated it complies with all applicable financial regulations, including GAAP standards that require digital asset impairment recognition when prices fall below cost.

“Bitcoin is volatile, but we believe it’s early in a long-term adoption curve,” Saylor said during a Thursday earnings call. “We are not traders. We are holders.”

The offering, structured as an at-the-market (ATM) equity program, will allow Strategy to sell shares over time at prevailing market prices. Analysts suggest this could provide flexibility in timing purchases to coincide with favorable market conditions.

While the long-term payoff remains uncertain, one thing is clear: Strategy continues to align its corporate identity with the future of decentralized finance.

“This is not just a financial play—it’s a philosophical one,” said Demirors. “They’re making a bet that the future of capital markets is digital, and they want to lead that transition.