Strategy Stock Price in 5 Years: MSTR Overshadows Q1 Loss by Rising by 40% YtD

Strategy, formerly MicroStrategy, has made headlines for its unwavering commitment to Bitcoin (BTC).

Under the leadership of Michael Saylor, the firm has transformed itself into one of the world’s largest corporate holders of Bitcoin.

But what lies ahead for the biggest Bitcoin holder in the world?

Outlook for 2025 Weakened

According to SimplyWallStreet analysts , the outlook for earnings per share (EPS) in fiscal year 2025 has weakened.

The revenue forecast for 2025 has been revised down from $473.7 million to $463.8 million. Losses are now expected to rise sharply from $0.41 per share to $16.31.

However, the software industry in the U.S. is projected to experience an average net income growth of 16% next year.

Despite the weaker earnings outlook, the consensus price target has increased from $487 to $524.

Strategy Starts 2025 With Net Loss

Strategy reported a first-quarter $5.91 billion write-down on its Bitcoin holdings, reflecting a 25% drop in BTC prices during the first quarter of 2025.

The company posted a net loss of $4.22 billion, or $16.49 per share, starkly contrasting to the $53.1 million loss, or $0.31 per share, recorded in the same quarter last year.

Despite the price slump, Strategy’s Bitcoin yield reached 11% for the quarter and 13.7% year-to-date, putting the firm on track to hit over 90% of its 2025 yield goal in just four months.

CFO Andrew Kang attributed the reported loss to a shift in accounting practices.

“Under fair value accounting, we now mark our holdings at quarter-end rather than tracking them throughout the period,” he said during the earnings call.

The company acquired an additional 301,335 BTC in the first quarter alone, fueling a 50% rise in MSTR’s value. Strategy’s market cap currently stands at $100.11 billion, with its shares up 269.66% year-over-year, recently trading at $381.60.

MSTR Shines Despite BTC Trading Rollercoaster

In a volatile market shaped by geopolitical tension and investor unease, Strategy (MSTR) has emerged as a standout performer.

The company’s stock surged by 31% in April alone, pushing its year-to-date gains to over 44%, a rare bright spot in a largely downbeat equity landscape.

Much of Strategy’s momentum stems from renewed enthusiasm around its Bitcoin-centric investment thesis.

As global markets reeled from President Trump’s sweeping April 2 tariff announcement, nicknamed “Liberation Day,” Bitcoin staged a sharp rally that outpaced traditional havens like gold and safe-haven currencies.

BTC rose 15% during the month after initially tumbling alongside risk assets. Bitcoin quickly rebounded as rising Treasury yields and mounting doubts about U.S. fiscal stability sent investors searching for alternatives to dollar-based holdings.

Strategy Remains the Largest Bitcoin Holder

Despite its stock decline, Strategy has continued accumulating Bitcoin rapidly, pausing acquisitions only in mid-February.

As of April 28, Strategy held 555,450 Bitcoins , valued at roughly $57.9 billion.

Earlier this year, Strategy announced plans to raise $21 billion through a new stock offering to fund operations, including potential Bitcoin purchases.

According to a filing with the U.S. Securities and Exchange Commission (SEC), the company will issue Class A Strike Preferred Stock to provide greater flexibility in raising capital.

This move is part of Strategy’s ambitious “21/21” plan to raise and invest $42 billion in Bitcoin.

Despite Bitcoin’s ongoing price decline and broader market challenges, Strategy remains the largest corporate Bitcoin holder, far ahead of its closest competitor , crypto miner MARA, which holds just 40,435 BTC, 0.2% of the total Bitcoin supply, compared to Strategy’s 2.4%.

Promoted To Nasdaq 100

Strategy has been added to the Nasdaq 100 after a strong 547% rise in 2024 until November end.

The inclusion is significant and primarily driven by Strategy’s  substantial Bitcoin holdings.

Its latest buy boosted Strategy’s total holdings to 447,470 BTC , acquired at a cumulative cost of about $27.9 billion. The firm’s average purchase price is $62,428 per Bitcoin.

As Bitcoin continues its rally and institutional interest strengthens, Strategy’s ascent highlights Bitcoin’s expanding role in mainstream finance.

Strategy shares have surged by 3,200% since adopting Bitcoin as its treasury asset in 2020 under co-founder Michael Saylor.

Analyst Bernstein analyst Gautam Chugani described Strategy’s approach as a long-term, high-conviction ‘buy and hold’ strategy. The company’s market capitalization has surpassed $100 billion, more than twice the value of its Bitcoin holdings.

2024 MSTR Stock Performance

Throughout 2024, MSTR has shown significant volatility , mainly influenced by its extensive Bitcoin investments.

The stock has experienced a strong upward trend, with a notable increase of approximately 359% in 2024, climbing from around $69 to $289.62. It retraced after surpassing $500 earlier last year.

MSTR touched $540 on Thursday, Nov. 21, 2024, but has since dropped down to under $290 on Dec. 31.

The stock started the year at $69.25 and continued with a depressed trend until March, when Bitcoin hit a new record high several times.

Factors driving this surge include strategic Bitcoin purchases and favorable market conditions. However, the stock also faced short-term pullbacks, reflecting the inherent volatility associated with cryptocurrency-related assets.

Short-Sellers Hit MSTR Stock

MSTR stock was hit by the news that Citron Research, led by Andrew Left, is shorting Strategy , asserting that the software company has effectively transformed into a Bitcoin investment fund.

According to Citron Research, with the emergence of Bitcoin ETFs, investors can directly invest in Bitcoin without relying on a stock strategy for indirect exposure.

Since October 2024, Strategy has issued approximately $10.5 billion of equity, most of which has been sold under its $42 billion strategy.

Citron Research highlighted the increasing accessibility of Bitcoin investments and suggested that Strategy’s stock price no longer reflects Bitcoin’s fundamentals.

Citron’s short position on Strategy adds to the growing list of investors betting against the company. According to Fintel data , there are currently 28 short positions against Strategy, with a total short value of over $16 million.