Strategy (MSTR), the world’s largest Bitcoin (BTC-USD) treasury company and a provider of AI-powered enterprise analytics software, is scheduled to announce its results for the first quarter of 2025 after the market closes on Thursday, May 1. The company, earlier known as MicroStrategy, is expected to report a narrower loss per share of $0.11 for Q1 2025 compared to $0.31 per share in the prior-year quarter.
Analysts expect MSTR to report Q1 revenue of $116.6 million, reflecting a year-over-year growth of 1.2%.
MSTR stock has rallied 32% year-to-date. Investors will pay attention to management’s commentary on the company’s Bitcoin strategy amid the ongoing volatility and updates on its software business.
According to Main Street Data, MSTR’s BTC Holdings have grown at a CAGR (compound annual growth rate) of 59% over the 2020-2024 period.
Analysts’ Views Ahead of MSTR’s Q1 Earnings
Heading into Q1 results, H.C. Wainwright analyst Mike Colonnese initiated coverage of Strategy stock with a Buy rating and a price target of $480, calling it one of the most “compelling equity investment vehicles” that offers Bitcoin exposure with an attractive risk-reward profile. The 5-star analyst added that Strategy helps investors gain levered upside exposure to one of the best-performing asset classes over the past decade via a combination of its differentiated Bitcoin treasury operations and massive BTC reserves.
Colonnese noted that Strategy has consistently raised its BTC holdings per share (BTC Yield) over time, thanks to its large-scale and accretive capital markets transactions, followed by the rapid deployment of equity and debt raises to fund Bitcoin purchases. Overall, the analyst is confident that MSTR stock will outperform BTC again this year. He sees notable upside to BTC prices in the second half of the year, based on his analysis of historical price cycles and multiple near-term positive catalysts, including accelerating institutional adoption and a favorable regulatory environment for digital assets in the U.S.
Meanwhile, following the preannouncement of a portion of Q1 results earlier this month, Benchmark analyst Mark Palmer reiterated a Buy rating on MSTR stock with a price target of $650. The 4-star analyst noted that MSTR’s Q1 results included a $5.91 billion unrealized loss on its BTC holdings, partially offset by a $1.69 billion income tax benefit. The loss reflected the company’s adoption of the Financial Accounting Standards Board’s (FASB) new fair-value accounting rules at the beginning of the year. These rules require Strategy to report changes in the market value of its BTC holdings on its income statement.
Here’s What Options Traders Anticipate
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 5.0% move in either direction in MSTR stock in reaction to Q1 results.
Is MSTR Stock a Good Buy?
Overall, Wall Street has a Strong Buy consensus rating on Strategy stock based on 13 Buys and one Sell recommendation. The average MSTR stock price target of $508.21 implies about 33.2% upside potential from current levels.
