After missing Wall Street’s quarterly estimates by a significant margin, MicroStrategy Inc. announced late Thursday that it will keep purchasing bitcoin and increase its holdings of the cryptocurrency.
Chief Executive Phong Le stated, “Our capital-markets strategy continues to grow our bitcoin holdings while delivering superior shareholder value.”
According to the company (MSTR), which also operates under the name Strategy, “with the strong momentum in the market” it raised two of its own measures, increasing its 2025 bitcoin-yield aim to 25% and its 2025 bitcoin-gain target to $15 billion.
MicroStrategy determines its bitcoin gain by multiplying the number of bitcoins (BTCUSD) it has at the beginning of a period by the yield, and it computes its bitcoin yield as a function of its bitcoin holdings and shares outstanding.
However, the business was completely off the mark in terms of more conventional measures. Revenue for the first quarter fell to $111.1 million, a nearly 4% year-over-year decline.
Compared to the 31 cents per share in the first quarter of 2024, it lost $16.49 per share, which was a far larger loss.
Based on $117 million in revenue, analysts surveyed by FactSet predicted the firm would report a GAAP loss of 11 cents per share.
As of the end of March, MicroStrategy’s cash and equivalents pile was at $60.3 million, up from $38.1 million on December 31.
301,335 bitcoins were added throughout the quarter, and as of Monday, holdings totaled 553,555 bitcoins at a total cost of $37.90 billion, or $68,459 per bitcoin.
After hours trading saw a 0.7% decline in the stock.
