TLDR:
- Strategy (formerly MicroStrategy) will report Q1 2025 earnings on May 1 after market close
- Analysts expect narrower loss of $0.11 per share and revenue of $116.6 million (1.2% YoY growth)
- MSTR stock rose 32% in April, its best month since November
- Speculation about a potential major capital raise during earnings call
- Company currently holds 553,555 Bitcoin worth approximately $52.57 billion
Strategy, the world’s largest Bitcoin treasury company, is set to announce its first-quarter 2025 results on May 1 after markets close. The company, previously known as MicroStrategy, has seen its stock rally 32% in April, marking its best monthly performance since November.
Analysts are anticipating a narrower loss per share of $0.11 for Q1 2025 compared to $0.31 in the same period last year. Revenue is expected to reach $116.6 million, reflecting a modest year-over-year growth of 1.2%.
The company’s Bitcoin holdings have grown at a compound annual growth rate of 59% over the 2020-2024 period, according to Main Street Data. Currently, Strategy holds 553,555 Bitcoin, valued at approximately $52.57 billion.
$MSTR began the month at $288 and ended at $380, for a +32% return in April, its biggest monthly gain since November 2024. pic.twitter.com/LQ9kYDaA6C
— Mark Harvey (@thepowerfulHRV) April 30, 2025
Analyst Perspectives
Wall Street maintains a Strong Buy consensus on Strategy stock, with 13 Buy recommendations and only one Sell. The average price target of $508.21 suggests about 33.2% upside potential from current levels.
H.C. Wainwright analyst Mike Colonnese recently initiated coverage with a Buy rating and a $480 price target. He described Strategy as one of the most “compelling equity investment vehicles” offering Bitcoin exposure with an attractive risk-reward profile.
Colonnese highlighted that Strategy has consistently increased its Bitcoin holdings per share over time through large-scale capital market transactions and rapid deployment of equity and debt raises to fund Bitcoin purchases.
Benchmark analyst Mark Palmer reiterated a Buy rating with a $650 price target following Strategy’s preannouncement of partial Q1 results. Palmer noted that these results included a $5.91 billion unrealized loss on Bitcoin holdings, partially offset by a $1.69 billion income tax benefit.
Earnings Expectations and Capital Raise Speculation
The Q1 results will be the first to reflect the company’s adoption of the Financial Accounting Standards Board’s new fair-value accounting rules. These rules require Strategy to report changes in the market value of its Bitcoin holdings on its income statement.
Options traders are expecting approximately a 5.0% move in either direction for MSTR stock in reaction to the earnings report, according to TipRanks’ Options tool.
There is growing speculation that Strategy might announce a major capital raise during its earnings call. On March 10, the company entered into a new sales agreement allowing it to issue and sell shares of its 8% Series A perpetual strike preferred stock to raise funds for general corporate purposes, including potential Bitcoin acquisitions.
Some industry observers have suggested that Strategy could take a more aggressive approach to buying Bitcoin. Richard Byworth, Syz Capital partner, recently considered whether the company should move away from over-the-counter purchases in favor of acquiring companies to use their cash holdings to fund Bitcoin buys.
Investors will be paying close attention to management commentary on the company’s Bitcoin strategy amid ongoing market volatility and any updates on its software business.
The earnings webinar, hosted by CEO Michael Saylor, will take place at 9 pm UTC on May 1, shortly after the results are announced.
