Leading crypto investor Strategy has published its financial report for the first quarter of 2025, sparking a strong reaction in the market. Despite impressive Bitcoin performance, the quarter ended in losses, surprising both analysts and investors.
Bitcoin Generates Profit, But Fails to Offset Losses
In the first four months of 2025, Strategy achieved a BTC return of 13.7%, which equates to $5.8 billion in profit. As of now, the company holds 553,555 BTC, with an average purchase price of $68,459 per coin.
Thus, Strategy remains one of the world’s largest public Bitcoin holders, continuing its aggressive strategy of accumulating digital gold. Nevertheless, the company’s net financial result was negative.
Financial Results Disappoint Wall Street
The company’s revenue in Q1 reached $111.1 billion, which is 3.6% lower than the same period last year. Moreover, Strategy posted a net loss of $4.2 billion, or $16.49 per share — significantly worse than expectations. Wall Street had forecasted a loss of only $0.11 per share.
The main reason for the steep decline was operating expenses, which surged by nearly 2000%, reaching $6 billion. Of this amount, $5.9 billion was unrealized Bitcoin losses, likely due to short-term market fluctuations.
New $21 Billion Stock Offering
Amid disappointing results, Strategy announced a new stock offering worth $21 billion. The raised capital will be used for further Bitcoin purchases, underscoring the company’s confidence in the cryptocurrency’s long-term growth.
Strategy’s CFO, Andrew Kang, also revealed updated annual targets: the company aims to increase its crypto portfolio return to 25% and achieve $15 billion in total profit. This confirms that Strategy is not backing away from its core strategy and expects a crypto market rebound in the second half of the year.
Altcoin ETFs: Approval Odds Are Rising
As interest in the crypto market grows, analysts at Bloomberg Intelligence have shared approval probability forecasts for altcoin ETFs in 2025. These projections could ignificantly impact investor sentiment:
– Litecoin (LTC) — 90%
– Solana (SOL) — 90%
– Ripple (XRP) — 85%
– Dogecoin (DOGE) — 80%
– HBAR (Hedera) — 80%
– Polkadot (DOT) — 75%
– Cardano (ADA) — 75%
– Avalanche (AVAX) — 75%
These figures are not investment advice, but they can serve as reference points for asset analysis. A high likelihood of ETF approval signals growing institutional interest, which may boost market growth for these tokens.
What Should Investors Consider?
Given Strategy’s high activity and rising ETF approval chances, investors may want to:
1. Evaluate the listed projects as potential buys, using ETF approval odds as one of the analytical indicators.
2. Maintain diversification — spread capital across BTC, ETH, and a range of promising altcoins.
3. Assess fundamental factors — including project ecosystem, trading volume, market cap, developer activity, and community engagement.
Despite multi-billion dollar losses, Strategy remains committed to its Bitcoin-focused strategy and is preparing for further acquisitions. As the market awaits new ETFs, 2025 could mark a turning point for the institutionalization of altcoins, not just Bitcoin.
The coming months will be decisive. Time will tell which players will ride the wave most successfully.
