Support STRF: A Resolute Yes, MSTR: A Clear No
On the first day of May, Strategy Inc., ticker symbols NASDAQMSTR, STRK, and NASDAQSTRF, unveiled their financial performance for the quarter that concluded in March 2025. You may recall my previous articles on MSTR, written for Seeking Alpha, including the one penned just last February.
This time around, I'm diving deeper into Strategy's financials, which paint a mixed picture. While revenue took a slight dip from $114.6 million to $111.1 million year-on-year, a dip attributed mainly to reduced product support sales, the company managed to boost its cash reserves, which rose to $60.3 million from $38.1 million at the end of 2024.
However, the real talk revolves around Strategy's aggressive Bitcoin buying spree. As of March 2025, the organization's Bitcoin holdings surged to an impressive 553,555 BTC, a staggering 301,000 BTC of which were acquired via a $21 billion stock offering. This Bitcoin strategy has already netted them a YTD profit of $5.8 billion, representing a yield of 13.7%. Andrew Kang, the CFO, even voiced a revised 2025 yield target of 25% and a $15 billion profit goal.
Interestingly, if Bitcoin maintains its current pricing near $97,000 (compared to the quarter-end price of $82,445), Strategy might stand to gain an additional $8 billion.
As for STRK and STRF, details related to their performance were not explicitly covered in the sources. While STRF is mentioned in a separate analysis suggesting a cautious approach compared to MSTR, no earnings data is available for STRK in these most recent results. Nonetheless, the Bitcoin-focused strategy employed by Strategy could potentially have ripple effects across all its offerings.
In essence, Strategy is all-in on Bitcoin, and the gamble could potentially yield generous returns. But investors should certainly tread cautiously, given the cryptocurrency market's inherent volatility.
- Strategy Inc., with ticker symbol NASDAQMSTR, revealed an impressive YTD profit of $5.8 billion from their Bitcoin strategy, a result of acquiring 301,000 BTC via a $21 billion stock offering.
- The CFO, Andrew Kang, revised the 2025 yield target for Strategy to 25% and set a $15 billion profit goal, reflecting their aggressive Bitcoin buying approach.
- If Bitcoin maintains its current pricing near $97,000, Strategy could potentially gain an additional $8 billion, underscoring the potential returns from their Bitcoin-focused strategy.
- For the fiscal year, details on earnings for Strategy's other symbols, STRK and STRF, were not explicitly covered, but the Bitcoin strategy could have potential implications across all its offerings.
