Strategy generates $5.8 billion in annual Bitcoin profits, boosts BTC yield goal to 25%.

The investment arm focused on Bitcoin within Strategy reported a year-to-date yield of 13.7% on BTC, translating into a gain of $5.8 billion as of April 28, per their first quarter financial results.

The organization has revised its year-end yield forecast for BTC from 15% to 25% and increased its gain projection from $10 billion to $15 billion.

As of April 28, the total Bitcoin holdings for the firm reached 553,555 BTC, acquired at a total cost of $37.9 billion, equating to about $68,459 per coin. These updated figures reflect the record $21 billion at-the-market (ATM) equity offering that helped the firm add 301,335 BTC to its inventory during the first quarter.

Yield, Gain, and Monetary Gain

Strategy monitors three key internal indicators pertaining to its Bitcoin approach: Yield, Gain, and Monetary Gain.

These measures are internal key performance indicators designed to reflect how the company’s capital allocation affects its Bitcoin exposure per share.

Yield indicates the percentage change in the ratio of Bitcoin holdings to Assumed Diluted Shares Outstanding. As of April 28, the year-to-date yield was reported at 13.7%, while the figure for the first quarter stood at 11%.

The term Assumed Diluted Shares Outstanding is defined by the firm as the total of basic shares plus all convertible instruments treated as shares, regardless of their vesting or exercise terms.

Gain quantifies the yield in Bitcoin terms, with the firm achieving a Gain of 49,131 BTC in the first quarter, and a cumulative total of 61,497 BTC year-to-date.

Monetary Gain converts this result into dollar value based on current Bitcoin prices. Using a Bitcoin price of approximately $95,000 on April 28, the firm calculated a Monetary Gain of $5.8 billion year-to-date.

Changes in Accounting and Unrealized Losses

On January 1, Strategy implemented ASU 2023-08, a new accounting standard for the fair value of digital assets. This transition resulted in a $12.7 billion boost in retained earnings as of the year’s start, aligning reported earnings more closely with the fluctuations observed in Bitcoin markets.

Despite this accounting adjustment, the company reported an unrealized fair value loss of $5.9 billion for the first quarter, influenced by the BTC price at the end of the quarter being $82,445.

However, given a price rebound to around $97,300 by late April, the company anticipates a fair value gain of about $8 billion for the ongoing second quarter.

As of March 31, the firm’s holdings included 528,185 BTC, with a cost basis of $35.6 billion and a market value of $43.5 billion, averaging an acquisition price of $67,457 per BTC.

Capital Deployment Strategy

Alongside the ATM common stock offering, Strategy issued $2 billion in 0% convertible senior notes due in 2030 and successfully launched two preferred stock IPOs, Strike and Strife, raising more than $1.2 billion collectively.

These financial tools contributed to the firm’s total net proceeds of $10 billion in the first four months of 2025.

The proceeds from these offerings were utilized to acquire additional Bitcoin, reinforcing the company’s goal of enhancing BTC exposure per share. Currently, the firm retains a capacity of $20.9 billion left under its STRK ATM offering agreement.

While these key performance indicators indicate an internal evaluation of capital efficiency in relation to Bitcoin accumulation, the firm has stressed that these metrics do not take into account liabilities or dividend responsibilities for preferred stock.

Management has also emphasized that the market should not interpret these indicators as traditional financial return metrics. Through its updated annual BTC performance objectives and the adoption of fair value accounting, Strategy is focused on sustaining its role as a capital markets vehicle for Bitcoin exposure.