Strategy Disappoints Wall Street Despite Strong Performance On Bitcoin

By: cointribuneen|2025/05/02 18:30:02
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The company led by Michael Saylor announces a strong performance of its bitcoin investments for the first quarter of 2025, but disappoints Wall Street analysts on its overall financial results. Substantial Gains on Bitcoin Despite Mixed Financial Results Strategy, the bitcoin investment company founded by Michael Saylor (formerly MicroStrategy), released its results for the first quarter of 2025 on May 1st. The company announced an impressive 13.7% return on its bitcoin holdings since the beginning of the year, representing a gain of about 61,000 BTC valued at 5.8 billion dollars. Despite this encouraging performance on the crypto front, the company did not meet Wall Street analysts’ expectations. Strategy recorded a revenue of 111.1 million dollars, down 3.6% compared to the same period last year and about 5% below market forecasts. More concerning still, the company posted a net loss of 4.2 billion dollars, or 16.49 dollars per diluted share, a figure well above analysts’ estimates who predicted a loss of only 11 cents per share. This massive loss is mainly explained by a spectacular increase in operating expenses, which jumped nearly 2,000% to reach 6 billion dollars, including 5.9 billion dollars in unrealized losses on its bitcoin investments. An Accumulation Strategy That Continues Despite Volatility Andrew Kang, Chief Financial Officer of Strategy, has announced even more ambitious goals for 2025, now targeting a 25% return on bitcoin and a total gain of 15 billion dollars. To support this vision, the company plans to issue an additional 21 billion dollars of shares intended to finance new bitcoin purchases. Since launching its bitcoin investment strategy in 2020, Strategy has accumulated over 550,000 BTC for a total investment of about 38 billion dollars, at an average purchase price of 68,500 dollars per BTC. As of May 1, 2025, the value of this reserve was estimated at over 53 billion dollars. The MSTR stock closed the day on May 1 with a slight increase of 0.39% at 381.60 dollars, before retreating slightly to 378.50 dollars in after-hours trading. Nevertheless, the stock shows a gain of 31.5% since the start of the year, although it remains below its November record that exceeded 470 dollars. Strategy dominates the ranking of publicly traded companies holding bitcoin, now attracting more than 13,000 institutions investing in the company . According to some analysts, Saylor’s accumulation strategy, which hints at a new massive purchase, could propel BTC up to 300,000 dollars.

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