Strategy (MSTR), formerly known as MicroStrategy, has cemented its place as the world’s largest Bitcoin Treasury Company. With more than 500,000 BTC under its belt, which represents more than 2.5% of Bitcoin’s total supply, it has intricately woven its destiny with the cryptocurrency market.
While global economic shifts and technical trends have played their part, the moment of reckoning came when President Donald Trump announced new “reciprocal” tariffs on U.S. trading partners. For some countries, these new levies approach 50%.
Bitcoin (BTCUSD), which had been riding high at $88,000, dove following the announcement and is trading near $83,000 as of this writing on April 4. MicroStrategy shares have held steady and are up roughly 2% in the year to date. However, they are down nearly 30% from their 2025 highs.
With Strategy moving in lockstep with Bitcoin’s fortunes, is this a golden opportunity for investors?
About Strategy Stock
Virginia-based MicroStrategy was originally a software company focused on enterprise analytics. But in 2020, under the leadership of Executive Chairman Michael Saylor, the company began accumulating Bitcoin as a so-called treasury asset.
Valued at a market cap of $72.6 billion, Strategy now leverages proceeds from equity and debt financings, alongside its operational cash flows.
The company’s transformation from a software firm to a Bitcoin powerhouse has yielded staggering returns. Over the past five years, it has skyrocketed by 2,150%. Moreover, MSTR’s aggressive accumulation of Bitcoin sent its stock price surging 885% in just two years.
Even in the past year alone, it climbed 82%.
A Closer Look at Strategy’s Q4 Earnings
On Feb. 5, Strategy pulled back the curtain on its Q4 2024 earnings. Total revenue declined 3% year-over-year to $120.7 million, falling short of Wall Street’s forecasts. The non-GAAP net loss for the quarter stood at $708.5 million, a stark contrast to the previous year’s net income of $102.5 million.
By the year’s close, Strategy’s cash and cash equivalents stood at $38.2 million. As of Dec. 31, 2024, the carrying value of its digital assets reached $23.9 billion.
Beyond these numbers, the company’s financial maneuvers throughout 2024 and into the first quarter of 2025 are nothing short of monumental. It has secured $18.8 billion in net proceeds through its at-the-market (ATM) equity offering program, while an additional $6.2 billion was raised via the issuance of five separate tranches of convertible notes.
This positions Strategy as the largest issuer of convertible bonds in a single calendar year over the last decade. Furthermore, the company has bolstered its financial standing by generating $584 million in gross proceeds through the issuance of STRK, a preferred perpetual stock.
Although the earnings report may have carried its share of setbacks, Strategy’s aggressive capital-raising efforts underscores its commitment to securing long-term financial flexibility.
What Do Analysts Expect for Strategy Stock?
Analysts remain bullish on MicroStrategy, upholding a consensus rating of “Strong Buy” for MSTR. Among 12 analysts covering the stock, 10 recommend a “Strong Buy,” one suggests “Moderate Buy,” while one advises “Strong Sell.”
The average price target of $513.67 represents potential upside of 142%, while the Street-high target of $650 suggests that the stock can climb as much as 196% from the current price level.
