Strategy’s earnings miss the mark but it’s still having a great day

Bitcoin’s buying machine Strategy reported first-quarter earnings today, the second one since its rebranding, and missed both revenue and earnings per share estimates.

The company’s legacy software business (remember, it used to have an actual business before becoming a bitcoin holding company) reported Q1 revenue of $111.1 million, below the consensus estimate of $116.3 million. This represents a 3.6% decrease year over year, compared to the first quarter of 2024. Strategy also reported a net loss of $16.49 earnings per share — far, far worse than analysts’ expectations, which expected a loss of just $0.02 a share.

That said, with each day, Strategy is further and further from what it used to be and more known for what it is: a stockpiler that now holds 553,555 bitcoin. Strategy announced a bitcoin yield of 13.7% and bitcoin gain of $5.8 billion year to date, representing 58% of its annual target, “demonstrating the effectiveness of our bitcoin strategy,” CFO Andrew Kang said in the release.

“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,” he added.

The company also announced a new $21 billion at-the-market (ATM) common stock equity offering.

The stock jumped earlier in the day to a year-to-date intraday high of $403. Shares dipped initially upon the earnings news but are back in the green in the after-hours market.