In a stunning turn of events, Strategy (MSTR) saw its stock surge by an impressive 32% this April, marking its most significant monthly gain since November. This surge comes just ahead of the company’s much-anticipated earnings call on May 1, where speculation is rife about a potential major capital increase as the firm continues to expand its substantial Bitcoin reserves.
Speculation Mounts on “Huge Capital Raise”
The impressive April performance of Strategy’s stock, closing at $380.11 on April 30—up from $288 at the end of March—has fueled speculation within the financial markets. According to market whispers, the company may announce a significant capital raise during its upcoming earnings call. This follows the firm’s earlier 59% rise in November, driven by a Bitcoin rally that saw the cryptocurrency peak at $100,000 after Donald Trump’s election victory on November 5.
Market analyst Thomas Fahrer, founder of Apollo Sat, hinted at this possibility, suggesting in a social media post that a “$100B” capital raise might be on the table. The anticipation is palpable as industry watchers await details during the call, where Strategy’s executive chairman, Michael Saylor, will delve into the firm’s financials.
Financial Performance and Bitcoin Holdings
With Strategy poised to announce its Q1 2025 results, analysts are predicting a modest 1% year-on-year revenue increase to $116.6 million. Despite this, it represents a 3.40% decline from the previous quarter’s $120.7 million, where the company missed revenue estimates by around $2 million. It’s noteworthy that Strategy has surpassed revenue predictions only 25% of the time over the past two years, adding a layer of uncertainty to its financial outlook.
Strategy’s Q4 2024 report revealed a net loss of $670.8 million, partly due to its aggressive accumulation of Bitcoin—adding 218,887 coins to its holdings. As of now, the firm holds 553,555 Bitcoin, valued at approximately $52.57 billion, according to data from Saylor Tracker.
In March, the company announced a new sales agreement to issue and sell shares of its 8% Series A perpetual strike preferred stock, aimed at raising funds for general corporate purposes, including potential Bitcoin acquisitions. This move underscores Strategy’s continued commitment to expanding its digital asset portfolio.
A Divergence of Opinions
Strategy’s bold strategy has sparked diverse opinions among industry experts. Richard Byworth, partner at Syz Capital, recently suggested that the firm should adopt a more audacious approach to acquiring Bitcoin. He proposed that Strategy consider purchasing companies outright to leverage their cash reserves for Bitcoin acquisitions, bypassing traditional over-the-counter buys. “Should Saylor buy Bitcoin really carelessly?” he pondered, hinting at a potential strategy to significantly drive up Bitcoin’s price.
As Strategy’s earnings call approaches, questions linger over the sustainability of its aggressive Bitcoin strategy. Will the potential capital raise materialize, and how will it impact the firm’s financial landscape? The answers may soon be revealed in what promises to be a pivotal moment for Strategy and its stakeholders.
While the cryptocurrency market remains inherently volatile, Strategy’s bold maneuvers continue to captivate investors and analysts alike. The coming days could offer further insight into the company’s strategic direction and its broader implications for the digital currency sphere. As with all investments, caution and due diligence remain paramount in navigating this complex financial landscape.
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This article is based on: Strategy ends April up 32% in best month since November as Q1 earnings loom
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
