MicroStrategy Bitcoin lost 5.9 billion in Q1, and the "21/21 Plan" doubled to the "42/42 Plan"

Due to accounting changes, requiring valuation of the large amount of Bit held by the company at market price, MicroStrategy Strategy recorded $5.9 billion in unrealized losses in the first quarter, and subsequently doubled its financing plan from the "21/21 Plan" to the "42/42 Plan" to raise more funds to purchase Bit.

Strategy First Quarter Bit Loss of $5.9 Billion

As of March 31, 2025, MicroStrategy Strategy's digital assets include approximately 528,185 Bits, with an original cost basis and market value of $35.6 billion and $43.5 billion respectively, reflecting an average cost of about $67,457 per Bit.

MicroStrategy Strategy adopted the new accounting standard ASU 2023-08 this year, recording $5.9 billion in unrealized losses in the first quarter, as the Bit market price dropped from $93,390 in the previous quarter to $82,445.

However, CFO Andrew Kang stated that the current Bit price of around $97,300 would mean a fair value gain of approximately $8 billion so far in the second quarter.

'21/21 Plan' Directly Doubled to '42/42 Plan'

MicroStrategy Strategy announced the "21/21 Plan" last October, aiming to increase capital by $42 billion over the next three years, including $21 billion in equity and $21 billion in fixed-income securities, to further support its Bit acquisition as part of its reserve asset strategy.

Within the three months ending March 31, 2025, MicroStrategy Strategy raised net proceeds of $7.7 billion through the issuance of new shares, convertible debt, and preferred shares.

Within half a year, Strategy could no longer meet the scale of the "21/21 Plan" and announced in its financial report that it would directly double it to the "42/42 Plan", approving amendments to the company's articles in January 2025 to increase the authorized Class A common stock from 330,000,000 shares to 10,330,000,000 shares, and the authorized preferred shares from 5,000,000 to 1,005,000,000.

Under the new "42/42 Plan", Strategy can also issue $21.1 billion in MSTR common stock, as well as $35.6 billion including convertible debt, preferred shares STRK and STRF.

Over 55 Million Institutional and Individual Investors Buy MSTR

With Bit rising continuously since last year and Trump's potential presidency likely to relax crypto regulation, many companies have begun to imitate Strategy's Bit reserve strategy, with 78 global listed companies including mining firms, pharmaceutical companies, and advertising companies buying Bit to replace their cash reserves.

Strategy proudly states that by the first quarter, over 55 million institutional and individual investors have bought MicroStrategy stock (MSTR), including BlackRock, Vanguard, Fidelity, and the Norwegian Sovereign Wealth Fund.

(Strategy Leading the Trend, Comprehensive Guide to Bit Reserve Strategy Company Investments)