The adoption of fair value accounting has fundamentally changed how Strategy’s Bitcoin holdings are reflected in its financial statements. Now, the company must update the value of its digital assets every reporting period, recognizing both unrealized gains and losses as they occur. This shift led to an immediate $12.7 billion boost in retained earnings at the start of 2025, but also exposed Strategy to a $5.9 billion unrealized loss in Q1 as Bitcoin’s price dipped at quarter-end123.

This new approach offers investors a real-time, transparent view of the company’s true Bitcoin exposure, aligning reported values with market realities and eliminating the old impairment-only model. However, it also means Strategy’s reported earnings will swing dramatically with Bitcoin’s notorious price volatility, making quarterly results far more sensitive to crypto market movements than before456.

Strategy employs unique performance metrics to evaluate its Bitcoin acquisition strategy, with BTC Yield serving as the cornerstone measurement. This metric tracks the percentage change in the ratio between Bitcoin holdings and fully diluted shares outstanding, essentially measuring how much more Bitcoin is owned per potential share of stock.12 For Q1 2025, Strategy achieved a BTC Yield of 11.0%, with a year-to-date figure of 13.7% as of April 28, significantly outpacing its original 15% annual target.3

The company also tracks two complementary metrics: BTC Gain, which represents the number of bitcoins held at the beginning of a period multiplied by the BTC Yield (49,131 BTC in Q1 and 61,497 year-to-date), and BTC $ Gain, which converts this figure to dollar value by multiplying it by Bitcoin's market price ($4.1 billion in Q1 and $5.8 billion year-to-date).43 These proprietary indicators aren't standard accounting metrics but rather internal KPIs designed to illustrate how effectively Strategy is increasing its per-share Bitcoin exposure through its capital deployment strategy.25

Strategy’s war chest for Bitcoin accumulation is built through a blend of capital-raising tactics that would make even the most ambitious Wall Street rainmaker blush. The company leans heavily on at-the-market (ATM) equity offerings-like its current $21 billion plan-which allow it to issue new shares directly into the market, raising funds without locking in a fixed price or diluting existing shareholders all at once12. On the fixed-income side, Strategy regularly taps institutional investors with convertible notes and bonds. These instruments, often issued with low interest rates, can later convert into equity if certain conditions are met, giving the company cheap access to billions in capital while preserving operational cash flow and avoiding excessive equity dilution34.

To date, the firm has raised capital through a mix of:

• Common stock sales (ATM offerings)

• Convertible notes and bonds

• Preferred share issuances

• Traditional cash flow from operations

This multi-pronged approach lets Strategy remain nimble, funding its Bitcoin spree regardless of market conditions, and positioning itself to seize opportunities as they arise. The company’s willingness to double its capital plan to $84 billion signals that, for now, no financial lever is off-limits in pursuit of digital asset dominance54.