Financial Performance - Total revenues for Q1 2025 were $111.1 million, a 3.6% decrease year-over-year compared to Q1 2024[16] - The Company reported total revenues of $111,066,000 for the three months ended March 31, 2025, compared to $115,246,000 for the same period in 2024, reflecting a decrease of approximately 3.4%[35] - The gross profit for the three months ended March 31, 2025, was $77,095,000, down from $85,231,000 in the prior year, indicating a decline of about 9.5%[35] - The Company incurred a net loss of $4,217,370,000 for the three months ended March 31, 2025, compared to a net loss of $53,118,000 for the same period in 2024, representing a significant increase in losses[35] - Basic loss per common share for the three months ended March 31, 2025, was $(16.49), compared to $(0.31) for the same period in 2024, indicating a substantial increase in loss per share[35] - The non-GAAP loss from operations for the three months ended March 31, 2025, was $(5,909,593), compared to $(185,911) for the same period in 2024, indicating a significant increase in losses[51] - The net loss attributable to common stockholders for the three months ended March 31, 2025, was $(4,228,018), compared to $(53,118) in 2024, reflecting an increase in losses of approximately 7,873%[53] - The diluted loss per common share for the three months ended March 31, 2025, was $(16.49), compared to $(0.31) in 2024, marking a substantial increase in loss per share[53] Digital Assets and Bitcoin Strategy - The Company achieved a "BTC Yield" of 13.7% year-to-date, surpassing the full year 2025 target of 15%[6] - "BTC $ Gain" for Q1 2025 was $4.1 billion, contributing to a year-to-date total of $5.8 billion, meeting 58% of the annual target[7] - Bitcoin holdings totaled 553,555 BTC with a total cost of $37.90 billion, averaging $68,459 per bitcoin as of April 28, 2025[6] - The Company recorded an unrealized loss of $5.9 billion on digital assets in Q1 2025 due to the adoption of fair value accounting[9] - The Company is increasing its 2025 "BTC Yield" target from 15% to 25% and "BTC $ Gain" target from $10 billion to $15 billion[6] - The Company purchased $7.66 billion in Bitcoin during Q1 2025, utilizing proceeds from various financing activities[44] - The market value of Bitcoin holdings increased to approximately $40.44 billion as of March 31, 2025, compared to $26.34 billion at the end of 2024[47] - The average purchase price per Bitcoin held increased to $67,457 as of March 31, 2025, from $58,863.90 at the end of 2024[47] Operating Expenses and Financial Position - Operating expenses for Q1 2025 were approximately $6.0 billion, a 1,976.1% increase year-over-year, primarily due to unrealized losses[16] - The Company’s total operating expenses for the three months ended March 31, 2025, were $5,998,507,000, compared to $288,933,000 in the prior year, showing a dramatic rise in expenses[35] - Total assets increased to $43.92 billion as of March 31, 2025, compared to $25.84 billion on December 31, 2024, representing a growth of 70%[37] - Digital assets held by the company reached $43.55 billion, up from $23.91 billion at the end of 2024, marking an increase of 82%[37] - Total liabilities rose to $10.39 billion as of March 31, 2025, compared to $7.61 billion at the end of 2024, reflecting a 37% increase[37] - Stockholders' equity increased to $32.22 billion as of March 31, 2025, up from $18.23 billion at the end of 2024, indicating a growth of 77%[37] Cash Flow and Investments - Cash and cash equivalents as of March 31, 2025, were $60.3 million, an increase of $22.2 million from December 31, 2024[16] - Net cash used in operating activities was $(2.39) million for the three months ended March 31, 2025, compared to $28.59 million provided in the same period of 2024[39] - The company reported a net cash outflow from investing activities of $(7.67) billion in Q1 2025, significantly higher than $(1.64) billion in Q1 2024[39] - Cash, cash equivalents, and restricted cash at the end of the period totaled $62.26 million, down from $83.73 million a year earlier[39] Strategic Focus and Future Outlook - The Company’s strategy includes using BTC Yield, BTC Gain, and BTC $ Gain as KPIs to assess the performance of its bitcoin acquisition strategy, although these metrics have limitations and do not reflect traditional financial performance measures[24] - The Company has not paid any dividends on its class A common stock historically and does not indicate any intention to do so in the future[30] - Forward-looking statements indicate that the Company’s ability to achieve positive BTC Yield, BTC Gain, or BTC $ Gain may depend on various factors, including market conditions and operational cash generation[31] - The Company has dedicated certain corporate personnel to its bitcoin strategy, reflecting a strategic focus on enhancing its digital asset management[58] - The Chief Operating Decision Maker (CODM) uses net income (loss) to assess the profitability of the software business, indicating a focus on controllable costs for future budgeting[59]
MicroStrategy Inc Series A Pfd(STRK) - 2025 Q1 - Quarterly Results