- MicroStrategy raised BTC goals after hitting 90% of its full-year yield by April.
- New $84B capital plan splits equity and debt to scale Bitcoin acquisition.
- Software revenue fell as BTC holdings now dominate MicroStrategy’s balance sheet.
MicroStrategy has raised its Bitcoin exposure targets following a record quarter for BTC yield and dollar gains. The company now plans $84 billion in total capital deployment, split evenly between equity and fixed income.
BTC Yield Surges, Capital Targets Doubled
MicroStrategy posted a 13.7% Bitcoin yield year-to-date through April 28, representing over 90% of its prior full-year goal. The BTC dollar gain reached $5.8 billion on 61,497 BTC added, equaling 58% of its previous $10 billion target. In a post by Michael Saylor, the company confirmed it raised its BTC yield goal to 25% and BTC $ Gain target to $15 billion.
The firm now holds 553,555 BTC at an average cost of $68,459, with current market value nearing $97,300 per coin. This translates to a potential fair value gain of $8 billion in Q2. Strategy’s Q1 update reflected an aggressive acceleration of its Bitcoin treasury model.
Preferred equity, convertibles, and ATM stock offerings accounted for most of the new capital raised in Q1 2025. MicroStrategy added $7.66 billion in BTC through these channels, which included $21 billion in equity issuance and over $1.2 billion in preferred shares. Shifting liquidity patterns introduce additional considerations for balance sheet leverage and dilution.
Strategic Bitcoin Plan Restructured
In the announcement, MicroStrategy confirmed it had doubled its capital plan to $42 billion in equity and $42 billion in fixed income. The new strategy centers on accelerating BTC acquisition while managing risk through diversified funding structures. Capital allocation is now more tightly aligned with BTC performance targets and fair value accounting standards.
The company also introduced the STRK ATM program, which retains a $20.9 billion issuance capacity. This sits alongside existing convertible notes and perpetual preferred shares aimed at expanding its BTC position. Evolving frameworks are reshaping operational models as equity and debt are repurposed for digital asset exposure.
Under ASU 2023-08, fair value accounting took effect January 1, resulting in a $12.7 billion uplift to retained earnings. However, unrealized Q1 losses totaled $5.9 billion amid price volatility. These adjustments do not impact BTC$ Gain, which reflects nominal BTC value growth regardless of quarterly remeasurements.
Software Segment Slows as BTC Focus Expands
Legacy software operations reported $111.1 million in Q1 revenue, down 3.6% year-over-year. Subscription services grew 61.6% to $37.1 million, but product support fell 16.2% to $52.5 million. Gross profit declined to $77.1 million as margins contracted under increased operational costs.
Segment income for Software was $18.4 million, while Corporate & Other posted a $4.24 billion loss. This includes unrealized BTC losses, custody fees, and debt servicing. Total digital assets stood at $43.5 billion, comprising the bulk of the $43.92 billion balance sheet.
