Strategy (MSTR) has reported its Bitcoin holdings now exceed $52 billion as they prepare for Q1 earnings on May 1. Recently, the company spent $1.42 billion to acquire more Bitcoin, funded by selling stock. Analysts maintain positive ratings on the stock amidst upcoming earnings, with potential upsides indicated by recent price targets. MSTR stock shows a Strong Buy consensus from Wall Street analysts, despite expected unrealized losses.
Strategy (MSTR), a firm with a bold approach towards Bitcoin investment, has hit the spotlight ahead of its Q1 earnings set for May 1, 2025. The company’s latest disclosure reveals that it now possesses 553,555 Bitcoins, a stash valued at more than $52 billion. Notably, their average cost per Bitcoin is recorded at $64,459, whereas current market prices hover just over $95,000, demonstrating their robust belief in Bitcoin’s potential to bolster financial stability.
Just recently, the firm has splashed approximately $1.42 billion on Bitcoin, adding 15,355 more coins to its reserves at an average purchase price of $92,737 per Bitcoin. The funding for this latest Bitcoin acquisition was secured by selling company stock. In the days between April 21 and April 27, MSTR sold over $4 million worth of Class A common shares, generating around $1.4 billion in net gains. Additionally, the company offloaded 435,069 STRK preferred shares, yielding an extra $37.5 million.
On Wall Street, sentiment towards MSTR stocks remains upbeat as the Q1 earnings release approaches. Analysts are keeping their Buy ratings firmly in place, suggesting confidence in the company’s strategy. TD Cowen’s renowned analyst Lance Vitanza recently reiterated his Buy rating, setting a price target of $550 that suggests a possible 49% increase from current values. He emphasizes that MSTR’s aggressive Bitcoin purchasing strategy significantly contributes to its financial robustness and makes the stock appealing to those seeking cryptocurrency exposure.
Earlier this month, Benchmark analyst Mark Palmer also reaffirmed a Buy rating, projecting an impressive 76% upside. However, he cautioned that the company will announce an unrealized loss of about $5.91 billion on its Bitcoin during Q1 2025, although this will be somewhat mitigated by a $1.69 billion tax benefit.
In summary, according to TipRanks, MSTR holds a consensus Strong Buy rating from 13 analysts on Wall Street—12 Buy recommendations have been made against just one Sell over the past three months. With an average price target of $510.38, analysts predict a potential upside of about 38.2% from current prices. Investors are left weighing risks against the optimistic Bitcoin outlook and Strategy’s notable market actions.
