Strategy (MSTR) Q1 Performance: Bullish Analysts Ignore Losses
In layman's terms:
Strategy's Bitcoin Acquisition Plans Continue to Gain Positive Outlook from Experts
Strategy, formerly known as MicroStrategy, reported a significant loss in Q1 2025, but analysts like Bernstein and Benchmark remained optimistic, setting price targets over $600 per share. The drop in earnings resulted from a decline in Bitcoin's price, but the company's focus on accumulating more Bitcoin through various methods keeps it at the forefront of the cryptocurrency market.
Financial Performance: A Mixed Bag
- Missing EPS and Revenue Shortfall: Strategy, operating as MSTR, experienced a substantial EPS miss in Q1 2025, reporting -$16.49 compared to the projected -$0.11. Revenue also fell short, reaching $111.1 million instead of the expected $117.08 million[5].
- Stock Price Fluctuations: Although stocks saw a slight decline of 0.54% in after-hours trading following the earnings report, MSTR's stock has exhibited a 32% gain since the start of 2025[5][2].
- Revenue Trends: The company's software revenues declined by 3.6% year-over-year, despite a 62% growth in cloud subscription services[5].
Bitcoin Holdings and Financial Targets
- Bitcoin Haul: As of April 28, 2025, Strategy owns 554,000 Bitcoins, worth approximately $53 billion based on current prices[1].
- Bitcoin Yield and Profit: Strategy achieved a 13.7% "BTC Yield" and a "BTC Profit" of $5.8 billion in 2025 YTD[1].
- Increased Goals: The company raised its "BTC Yield" target from 15% to 25% and its "BTC Profit" target from $10 billion to $15 billion[1].
Analysts' Expectations and Price Targets
- Volatile Stock: The MSTR stock price is often influenced by Bitcoin's movement, leading to stock performance volatility[2].
- Forecasted Stock Price: Stock price projections for May 2025 range from $374 to $570[4].
- Future Growth Prospects: Despite the Q1 shortfalls, analysts expect modest growth for FY2025, with cloud subscription services as a key growth driver[5].
Bullish Predictions from Bernstein and Benchmark
In a nod to MSTR's leading position in Bitcoin acquisition and its scaled platform, both analyst firms upheld buy ratings and issued price targets over $600 per share. MSTR closed at $394.37 on Friday, marking a 3.35% increase[5].
Sources:
- MicroStrategy Inc. Bitcoin Tax Strategy Yield and Gain
- Microstrategy (MSTR)'s stock price soared 5% after it said it now owns 129,699 bitcoins worth about $3.56 billion
- Bitcoin Price Prediction 2025: Is It Too Late to Invest in Bitcoin?
- MicroStrategy (MSTR) Stock Price Prediction - May 2025
- MicroStrategy Inc. (MSTR) Q1 2025 earnings call
- Despite the significant loss in Q1 2025, MicroStrategy (MSTR), also known as Strategy, continues to have optimistic price targets due to its emphasis on cryptocurrency, specifically Bitcoin.
- MSTR owns a substantial amount of Bitcoin, with approximately 554,000 coins as of April 28, 2025, which is worth around $53 billion based on current prices.
- The company's focus on Bitcoin has led to a 13.7% "BTC Yield" and a profitable "BTC Profit" of $5.8 billion in 2025 YTD.
- Analysts expect slow but steady growth in MSTR's cloud subscription services to drive the company's future performance.
- In light of MSTR's strong position in Bitcoin acquisition and its scaled platform, firms like Bernstein and Benchmark have reaffirmed buy ratings and set price targets over $600 per share for MSTR stock.
