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Strategy Inc. (formerly MicroStrategy Inc.) reported mixed Q1 2025 results, with revenue of $111.07 million falling short of analyst expectations of $115.85 million and an adjusted loss of $16.53 per share versus a forecasted $-0.02 EPS. Despite these setbacks, subscription services revenue grew 61.6% year-over-year, and combined product licenses and subscription services revenue increased by 23.6%. The company continues its pivot to a Bitcoin-centric model, holding 528,185 Bitcoin acquired at an average price of $67,457 per Bitcoin. Strategy raised its 2025 Bitcoin Yield target to 25% (up from 15%) and BTC $ Gain target to $15 billion (up from $10 billion), with Q1 Bitcoin Yield at 11%, rising to 13.7% by April 28. Cash and cash equivalents increased to $60.3 million, up from $38.1 million at the end of 2024. Analyst sentiment on MSTR remains mixed, with a 12-month price target averaging $498.17, ranging from $409.00 to $619.00. While profitability challenges persist, including a net margin of -555.78% and revenue growth declining by -3.04%, the company maintains strong gross profit and a conservative debt-to-equity ratio of 0.4. MSTR's stock has risen 31% year-to-date and 225.01% over the past 52 weeks, driven by its strategy of issuing 0% convertible bonds to fund Bitcoin purchases. Industry experts, including Tom Lee of Fundstrat Capital, highlight the potential upside if Bitcoin’s value increases. Strategy Inc. is a leader in the Bitcoin treasury space, with over 70 public companies adopting similar standards.
Source content provided by Benzinga.
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About MSTR

Strategy is a bitcoin treasury company and a provider of business intelligence services. It is designed to provide investors varying degrees of economic exposure to Bitcoin by offering a range of securities, including equity and fixed-income ... Read more

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Bullish Option Strategy: Long Calls

Traders buy a single call option on a stock or ETF. This strategy can benefit from a price increase while risking more capital than a spread.

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