Disclaimer: The analysts who co-authored this work own Strategic Stock (MSTR).
Strategy (MSTR) reported a first quarter loss of $16.49 after posting a $5.9 billion cut to Bitcoin stack thanks to a massive drop in BTC prices in the first three months of its first year.
However, the company, led by executive chairman Michael Saylor, shows no indication that it will slow the pace of Bitcoin acquisitions. With its latest BTC purchase last week, the company announced a new $21 billion supply in the market along with revenues, as it ran out almost all of its previous $21 billion in common stock.
Looking at the software business, quarterly revenue fell 3.6% to $111.1 million, down 3.6% from $115.2 million the previous year. Quarterly subscription services revenue was $37.1 million compared to $23.0 million the previous year.
Over the quarter, the strategy achieved a “BTC yield” of 11.0%, reflecting growth in Bitcoin (BTC) holdings compared to diluted stocks. “BTC $ gain” for the quarter was around $4.1 billion, approaching its $10 billion profit target at the time.
The company raised its long-term BTC target from 15% to 25%, with BTC $ profit rising from $10 billion to $15 billion.
The company’s shares have been trading 27% higher since the beginning of the year. Bitcoin has traded about 2.5% higher for around $96,547 in the last 24 hours.
Including the purchase in April, the company has acquired 553,555 Bitcoin for $37.9 billion or $68,459 each. That stack is worth around $53 billion at its current price.
“Our capital market strategy continues to increase Bitcoin holdings while providing excellent shareholder value. We are proud to be at the pioneering frontline in this sector as more than 70 public companies around the world currently adopt Bitcoin financial standards,” Strategy President and CEO Phong Le said in a statement.
The stocks are slightly higher after trading.