Strategy (NASDAQ:MSTR) Issues Earnings Results, Misses Expectations By $34.84 EPS

Strategy (NASDAQ:MSTR) posted its quarterly earnings results on Tuesday. The software maker reported ($38.25) EPS for the quarter, missing analysts’ consensus estimates of ($3.41) by ($34.84), Zacks reports. Strategy had a negative net margin of 806.34% and a negative return on equity of 8.74%. During the same quarter in the prior year, the business earned ($16.49) EPS. The company’s quarterly revenue was up 11.9% compared to the same quarter last year.

Here are the key takeaways from Strategy’s conference call:

• Strategy holds 818,334 Bitcoin (~3.9% of total supply) and increased Bitcoin-per-share to 213,371 sats (~18% YoY), having added 89,599 BTC in Q1 and another 56,235 BTC in Q2-to-date — reinforcing its position as the largest corporate Bitcoin holder.
• Q1 operating loss of $14.5 billion and net loss of $12.8 billion was reported, driven primarily by quarter-end mark-to-market declines in Bitcoin price (management describes these as largely non‑cash and market‑driven).
• Stretch (STRC) has grown to $8.5 billion outstanding with ~11.5% dividend yield and high liquidity (~$375M average daily trading); the company is proposing to shift Stretch dividends from monthly to semi-monthly to reduce reinvestment lag and improve trading efficiency.
• Management emphasized expanded capital‑markets optionality — using equity issuances, digital credit (Stretch), retiring convertible debt, and selective Bitcoin sales when accretive — guided by an MNAV break‑even of ~1.22x and a stated goal to double Bitcoin-per-share in seven years.
• The balance sheet remains liquid and low‑leverage with ~$6B net debt (≈9.3% net leverage), a $2.25B USD cash reserve, and a stressed scenario showing the Bitcoin reserve would still cover net debt after an extreme decline, underscoring stated resilience.

Strategy Trading Up 1.7%

NASDAQ MSTR traded up $3.10 during trading on Tuesday, hitting $186.90. The company had a trading volume of 14,930,659 shares, compared to its average volume of 19,036,902. The company has a current ratio of 5.62, a quick ratio of 5.62 and a debt-to-equity ratio of 0.18. Strategy has a one year low of $104.17 and a one year high of $457.22. The company has a market cap of $62.38 billion, a price-to-earnings ratio of -10.16 and a beta of 3.59. The company’s fifty day moving average is $141.84 and its 200-day moving average is $169.59.

Key Stories Impacting Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Bitcoin rally lifts crypto-linked equities — renewed bitcoin strength above ~$80k has re-rated bitcoin-treasury names and helped support demand for MSTR shares. Bitcoin Surges Above $80K — Blockonomi
• Positive Sentiment: Preferred-stock yields (STRC) are drawing investor interest — STRC’s high effective yield is a capital-market tailwind that can support funding for bitcoin purchases or balance‑sheet activity. STRC Yields — Bitcoin.com
• Positive Sentiment: Street sees meaningful upside vs. current price — several analyst notes highlight large upside scenarios if bitcoin recovers and execution continues. Analysts See Upside — 247WallSt
• Neutral Sentiment: ATM equity program and recent share sales updated — company reported at‑the‑market (ATM) equity activity and current BTC holdings; informative for pace of future BTC buys but not an immediate directional catalyst. ATM Equity Update — TipRanks
• Neutral Sentiment: Equity raise — company raised ~$82M via MSTR share sales while keeping BTC holdings flat in the snapshot; raises liquidity but can dilute near term. Raised $82M via Stock Sales — Yahoo Finance
• Neutral Sentiment: Options show elevated near-term volatility — traders priced an outsized move around the Q1 report, signaling higher short-term risk for the stock. Options Move Preview — TipRanks
• Negative Sentiment: Large Q1 loss tied to bitcoin markdowns — Strategy reported a multi‑billion net loss and a ($38.25) EPS miss as bitcoin valuation declines overwhelmed operating gains, driving headline risk and earnings volatility. Wider Q1 Loss — Reuters
• Negative Sentiment: Management abandons ‘never sell’ stance on bitcoin — CEO signaled the company may sell BTC or use BTC to fund debt when accretive to bitcoin‑per‑share, introducing execution and signaling risk around the firm’s pure accumulation story. Policy Shift — CNBC
• Negative Sentiment: Insider selling — a director disclosed share sales in late April/early May, which can attract investor attention on insider liquidity even though holdings remain material. SEC Filing — Insider Sales

Insider Buying and Selling at Strategy

In other news, Director Jarrod M. Patten sold 2,250 shares of the company’s stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $173.84, for a total value of $391,140.00. Following the sale, the director directly owned 28,000 shares of the company’s stock, valued at $4,867,520. This represents a 7.44% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Over the last quarter, insiders have sold 25,452 shares of company stock valued at $3,708,002. 8.46% of the stock is owned by corporate insiders.

Institutional Trading of Strategy

A number of hedge funds and other institutional investors have recently modified their holdings of the business. State Street Corp grew its position in shares of Strategy by 2.3% in the 4th quarter. State Street Corp now owns 6,127,301 shares of the software maker’s stock worth $931,043,000 after buying an additional 138,253 shares during the period. Amundi grew its position in shares of Strategy by 373.7% in the 4th quarter. Amundi now owns 4,790,702 shares of the software maker’s stock worth $727,947,000 after buying an additional 3,779,340 shares during the period. Invesco Ltd. grew its position in shares of Strategy by 13.9% in the 3rd quarter. Invesco Ltd. now owns 1,593,085 shares of the software maker’s stock worth $513,308,000 after buying an additional 194,987 shares during the period. Northern Trust Corp grew its position in shares of Strategy by 0.7% in the 4th quarter. Northern Trust Corp now owns 1,581,952 shares of the software maker’s stock worth $240,378,000 after buying an additional 11,629 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of Strategy by 19.4% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,493,816 shares of the software maker’s stock worth $226,985,000 after buying an additional 242,582 shares during the period. 59.84% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages have commented on MSTR. Wall Street Zen lowered shares of Strategy from a “hold” rating to a “sell” rating in a report on Sunday, February 8th. Mizuho set a $320.00 price objective on shares of Strategy and gave the stock an “outperform” rating in a report on Tuesday, February 17th. B. Riley Financial restated a “buy” rating on shares of Strategy in a report on Wednesday, April 29th. Cantor Fitzgerald set a $212.00 price objective on shares of Strategy and gave the stock an “overweight” rating in a report on Tuesday, April 21st. Finally, BTIG Research restated a “buy” rating on shares of Strategy in a report on Wednesday, April 8th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $316.43.

Strategy Company Profile

Strategy, formerly known as MicroStrategy, Incorporated (NASDAQ: MSTR) is a global provider of enterprise analytics and mobility software. The company’s flagship platform offers business intelligence, data discovery, and advanced visualizations that enable organizations to analyze large volumes of data and deliver actionable insights. In addition to traditional on-premises deployments, Strategy provides a range of cloud-based services and managed offerings that allow customers to leverage the power of its analytics tools without managing complex infrastructure.

Founded in 1989 by Michael J.