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MicroStrategy (Nasdaq: MSTR), which now goes by Strategy, traded even higher at $403.1 in pre-market trading as it is about to release its Q1 earnings report.
The company's stock has benefitted from Bitcoin's surge and continued expansion of its crypto treasury (the company owns 553,555 BTC, currently worth over $53 billion). As per Kraken's price feed, Bitcoin was trading at $97,209.46 at press time.
On May 1, MSTR traded up to $403.1, a record high year-to-date (YTD), just hours before the firm is about to report its Q1 earnings. However, as of now, Strategy’s stock price is standing at 389.20, dipping around 1.26%.
While the EPS outlook is still bearish, MicroStrategy's differentiated strategy, based on its dominance as the largest corporate holder of Bitcoin, paired with its low operational debt compared to the crypto-influenced equity market cap, represents a high-risk, speculative play, say reports.
In advance of its next earnings report, analysts project that the company will post earnings per share of -$0.11, which would result in ongoing operating losses and more valuation fluctuations connected to Bitcoin. Revenue estimates are around $116.6 million —reflecting its regular spot in the fast-moving world of enterprise software.
The significant price movement reflects a big gain from last quarter, when Strategy held 471,107 BTC or approximately $45 billion at the time.
Strategy had reported a loss last quarter because of an impairment charge on those holdings under previous accounting rules.
Interestingly, Strategy holds 2.636% of the total Bitcoin supply of 21 million. All eyes are now on Strategy's Q1 report to see how its massive crypto holdings performed under the new accounting rules.