Live: Strategy (MSTR) Q2 Earnings are ‘Most Important Event’ in Company History

We are entering the peak period of the ‘crypto earnings season.’ Robinhood (Nasdaq: HOOD) announced excellent earnings last night – although the stock is flat today after a massive run up headed into earnings – and now Coinbase and Strategy (Nasdaq: MSTR | MSTR Price Prediction) report tonight. 

Strategy is up 35% so far this year amidst a strong rally in the price of Bitcoin. Can that rally continue? We’ll be posting live news and analysis right after earnings hit tonight. All you have to do is simply leave this live blog open, and updates will post automatically. 

With that said, let’s look back at what Strategy reported back in Q1. 

MSTR | MicroStrategy Q1’25 Earnings Highlights:

Here’s what MicroStrategy reported last quarter. Of course, figures like revenue and net income have become far less important as the company is now mostly an asset play on the value of Bitcoin. 

• Adj. EPS: $(16.49) ❌
• Revenue: $111.1M [✅]; DOWN -3.6% YoY
• Adj. Gross Margin: 69.4% [✅]; DOWN -460 bps YoY
• Net Income: $(4.2)B ❌
• Cash and Cash Equivalents: $60.3M; UP +58.2% YoY
• Digital Assets: $43.5B; UP +82.5% YoY

Outlook:

• BTC Yield Target: Increased from 15% to 25% [✅]
  • The increase reflects strong momentum in the market and effective execution of treasury operations.
  • Management is optimistic about achieving the new target based on current market conditions.
• BTC $ Gain Target: Increased from $10B to $15B [✅]
  • This adjustment is based on the year-to-date performance, achieving $5.8 billion in BTC $ Gain as of April 28, 2025.

Q1 Segment Performance:

• Software Business Revenue: $111.1M [✅]; DOWN -3.6% YoY
• Subscription Services Revenue: $37.1M [✅]; UP +61.6% YoY
• Product Licenses and Subscription Services Revenue: $44.4M [✅]; UP +23.6% YoY
• Product Support Revenue: $52.5M [✅]; DOWN -16.2% YoY
• Other Services Revenue: $14.2M [✅]; DOWN -15.0% YoY

Other Key Q1 Metrics:

• Adj. Operating Income: $(5.9)B [✅]; DOWN -2,800% YoY
• Operating Expenses: $6.0B [✅]; UP +1,976.1% YoY
• Free Cash Flow: $(2.4)M; DOWN -108.4% YoY
• Digital Asset Impairment Losses: $5.9B; Reflects the first reporting period applying fair value accounting.

CEO Commentary:

• Phong Le: “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. Our capital markets strategy continues to grow our Bitcoin holdings while delivering superior shareholder value. With over 70 public companies worldwide now adopting a Bitcoin treasury standard, we are proud to be at the forefront in pioneering this space.”

CFO Commentary:

• Andrew Kang: “We are thrilled to report a strong start to the year with a year-to-date ‘BTC Yield’ of 13.7%, achieving over 90% of our 2025 target in just the first four months of the year. Our year-to-date ‘BTC $ Gain’ of $5.8 billion also meets 58% of our annual target, demonstrating the effectiveness of our Bitcoin strategy. With the strong momentum in the market and our successful execution of our treasury operations thus far this year, we are increasing our 2025 ‘BTC Yield’ target to 25% and our 2025 ‘BTC $ Gain’ target to $15 billion.”

Strategic Updates:

• Adoption of fair value accounting for Bitcoin holdings resulted in a significant $12.7 billion uplift in the beginning balance of retained earnings.
• Successful execution of two preferred stock IPOs, enhancing capital base and supporting Bitcoin acquisition strategy.

Contact [email protected] for any questions or corrections.