Microstrategy misses Q1 estimates, bitcoin holdings grow

Published 01/05/2025, 21:26
© Shutterstock

Investing.com -- MicroStrategy Incorporated (NASDAQ:MSTR), the largest corporate holder of bitcoin, reported first-quarter results that fell short of analyst expectations while continuing to expand its bitcoin holdings.

The company posted a loss of $16.53 per share for the quarter ended March 31, significantly wider than the $0.11 loss per share analysts had forecast. Revenue came in at $111.1 million, down 3.6% YoY and below the consensus estimate of $117.08 million.

Despite the earnings miss, Microstrategy increased its bitcoin holdings to 553,555 as of April 28, representing a total cost of $37.90 billion or $68,459 per bitcoin. The company achieved a "BTC Yield" of 13.7% and a "BTC Gain" of 61,497 bitcoins year-to-date.

"We successfully executed our record $21 billion common stock ATM, adding 301,335 BTC to our balance sheet while simultaneously achieving a 50% increase in MSTR share price during the same period," said Phong Le, President and CEO.

The company also announced it is raising its 2025 "BTC Yield" target from 15% to 25% and its "BTC $ Gain" target from $10 billion to $15 billion.

Microstrategy’s stock was down 0.1% following the earnings release, suggesting investors were largely neutral on the mixed results and expanded bitcoin holdings.

CFO Andrew Kang noted that despite recognizing an unrealized loss in Q1 due to bitcoin’s price of $82,445 at quarter-end, the current price of around $97,300 would imply a fair value gain of roughly $8.0 billion so far in Q2.

The company continues to pursue its bitcoin-focused strategy, with over 70 public companies worldwide now adopting what Microstrategy calls a "Bitcoin treasury standard."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.