Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud or unlawful business practices by Strategy Incorporated, following significant financial losses reported by the company [1][3]. Financial Performance - Strategy disclosed a $5.91 billion unrealized loss on its digital assets for Q1 2025, which is anticipated to lead to a net loss for the quarter [3]. - The company expressed concerns about its ability to regain profitability in future periods, particularly if it continues to incur significant unrealized losses related to its digital assets [3]. Market Reaction - Following the announcement of the financial losses, Strategy's stock price experienced a sharp decline during intraday trading on April 7, 2025 [3].

Group 1 - The article discusses the author's background as a former media research analyst with a focus on crypto, BTC miners, metals, and media equities [1] - The author expresses a personal investment strategy, indicating a beneficial long position in STRF and BTC-USD through various financial instruments [2] - The article emphasizes that the views expressed are personal opinions and not investment advice, highlighting the author's independence from any business relationships with mentioned companies [2][3] Group 2 - The author writes a newsletter called the Heretic Speculator, which is separate from Seeking Alpha [1] - There is a clear disclaimer that past performance does not guarantee future results, and no specific investment recommendations are made [3] - The article notes that the authors on Seeking Alpha include both professional and individual investors, some of whom may not be licensed or certified [3]

Core Viewpoint - The article discusses the transformation of Strategy (formerly MicroStrategy) into a Bitcoin treasury, highlighting the emergence of a new company, Twenty One, which aims to focus exclusively on accumulating Bitcoin for shareholders [1][2][4]. Group 1: Company Transformation - Strategy has shifted from being an enterprise software provider to primarily accumulating Bitcoin, with CEO Michael Saylor likening the stock to a leveraged Bitcoin ETF [1]. - The stock has gained popularity as Bitcoin's value has increased significantly over the past five years [2]. Group 2: Emergence of Twenty One - Twenty One, a new Bitcoin treasury backed by Tether, Bitfinex, and SoftBank, plans to go public via SPAC and aims to eliminate unrelated business activities to focus solely on Bitcoin accumulation [4][5]. - Following the announcement of its merger with Cantor Equity Partners, shares of Cantor tripled in value, reflecting investor excitement [5]. Group 3: Financial Projections - The merger gives Cantor a market value of approximately $400 million, with a $100 million cash pile for a 2.7% stake in Twenty One post-merger [6]. - Twenty One aims to establish a treasury of 42,000 Bitcoins, building on $3 billion worth of Bitcoin supplied by its backers [6]. Group 4: Valuation Insights - Investors are valuing Twenty One's planned Bitcoin holdings at nearly four times their actual value, with 2.7% of 42,000 Bitcoins worth about $108 million [7][8]. - The strategy of increasing Bitcoin per share is expected to provide a yield for investors, which is currently impractical for most Bitcoin holders [9]. Group 5: Comparison with Strategy - Strategy's stock trades at about twice the value of its Bitcoin treasury, allowing it to sell shares and reinvest in Bitcoin, thereby increasing stock value [10]. - The company's board has authorized a significant increase in share count, raising concerns about the risks associated with leveraged exposure to Bitcoin [11]. Group 6: Investor Expectations - Investors in Twenty One are anticipating even greater increases in Bitcoin per share compared to those in Strategy, as articulated by CEO Jack Mallers [12]. - While potential returns are high if Bitcoin appreciates, the volatility of Bitcoin poses significant risks, making the premium above net asset value a questionable investment [13].

Group 1 - The article discusses the author's personal investment strategies in crypto, specifically focusing on Bitcoin miners and related equities [1][2] - The author has a beneficial long position in shares of STRF, BTC-USD, MARA, and CLSK, indicating a positive outlook on these assets [2] - The article emphasizes that the views expressed are personal opinions and not investment advice, highlighting the author's independent analysis [2][3] Group 2 - The author has experience as a media research analyst, which may provide insights into market trends and investment opportunities in the crypto sector [1] - The article mentions the Heretic Speculator newsletter, suggesting a commitment to sharing investment insights and analysis beyond the platform [1] - The author clarifies that there is no business relationship with any mentioned companies, reinforcing the independence of the analysis [2]

Canaccord Genuity analyst Joseph Vafi reiterated the Buy rating on MicroStrategy Inc. MSTR on Friday, raising the price forecast from $409 to $464.This week, the company reported first-quarter revenue of $111.07 million, falling slightly below analyst expectations, while posting a significant adjusted loss of $16.53 per share.Despite this, MicroStrategy's Bitcoin holdings, now totaling 553,555 BTC, have helped reinforce investor confidence. Year-to-date, the firm has acquired over 15,000 Bitcoin at an avera ...

Core Viewpoint - Defiance ETFs has launched the Defiance Leveraged Long + Income MSTR ETF (MST), which combines leveraged exposure to MicroStrategy with a unique weekly income payout feature, targeting retail investors seeking both growth and income [1][2]. Investment Objective - The Fund aims for long-term capital appreciation while also seeking current income through an Income Generation Strategy that utilizes credit call spreads to manage risk and generate premium income [3]. Unique Features of MST - MST aims to deliver approximately 150% to 200% of MicroStrategy's daily price performance, providing leveraged exposure to its volatility and growth potential [9]. - The ETF generates high income through a credit call spreads strategy, distributing income to investors weekly, thus offering regular cash flow [9]. - By investing in MicroStrategy, known for its significant Bitcoin holdings, MST provides indirect access to Bitcoin market trends without direct cryptocurrency ownership [9]. MicroStrategy's Performance - MicroStrategy has experienced over 4,000% growth since its December 2022 low, driven by its Bitcoin-focused strategy and leadership in data analytics [5]. - Previous MSTR-based ETFs from Defiance have surpassed $1 billion in combined assets, indicating strong market interest and performance [5]. Company Background - Defiance, founded in 2018, is recognized for its innovative ETF offerings, specializing in thematic, income, and leveraged ETFs, allowing investors to take amplified positions in high-growth companies without needing a margin account [6].

Q1 2025 Financial Results May 1, 2025 Copyright © 2025 Strategy. All Rights Reserved. Q1 2025 Review Strategy Q1 2025 Earnings Call Safe Harbor Statement FORWARD-LOOKING STATEMENTS Some of the information we provide in this presentation regarding our future expectations, plans, and prospects may constitute forward-looking statements. Actual results may differ materially from these forward- looking statements due to various important factors, including the risk factors discussed in our most recent Annual Rep ...

Strategy (MSTR) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Company Participants Shirish Jajodia - Head - IR & TreasuryPhong Le - President & CEOAndrew Kang - Executive VP & CFOMichael Saylor - Executive Chairman Shirish Jajodia And good evening. I'm Sherid Jajodiya, corporate treasurer and head of investor relations at Strategy. I will be your moderator for Strategy's twenty twenty five first quarter earnings webinar. Before we proceed, I will read the safe harbor statement. Some of the information we p ...

Strategy (MSTR) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Speaker0 And good evening. I'm Sherid Jajodiya, corporate treasurer and head of investor relations at Strategy. I will be your moderator for Strategy's twenty twenty five first quarter earnings webinar. Before we proceed, I will read the safe harbor statement. Some of the information we provide during today's call regarding our future expectations, plans and prospects may constitute forward looking statements. Actual results may differ materiall ...

Financial Performance - Total revenues for Q1 2025 were $111.1 million, a 3.6% decrease year-over-year compared to Q1 2024[16] - The Company reported total revenues of $111,066,000 for the three months ended March 31, 2025, compared to $115,246,000 for the same period in 2024, reflecting a decrease of approximately 3.4%[35] - The gross profit for the three months ended March 31, 2025, was $77,095,000, down from $85,231,000 in the prior year, indicating a decline of about 9.6%[35] - Total revenues for the Software Business segment for the three months ended March 31, 2025, were $111,066 thousand, a decrease from $115,246 thousand in the same period of 2024[61] Net Loss and Expenses - Net loss for Q1 2025 was $4.217 billion, or $16.49 per diluted share, compared to a net loss of $53.1 million, or $0.31 per diluted share, in Q1 2024[16] - The net loss attributable to common stockholders for the three months ended March 31, 2025, was $4,228,018,000, significantly higher than the net loss of $53,118,000 for the same period in 2024[35] - The Company incurred an unrealized loss on digital assets amounting to $5,906,005,000 for the three months ended March 31, 2025, compared to no such loss in the same period of 2024[35] - The Company’s total operating expenses for the three months ended March 31, 2025, were $5,998,507,000, compared to $288,933,000 in the prior year, reflecting a substantial increase[35] - For the three months ended March 31, 2025, MicroStrategy reported a loss from operations of $5,921,412 thousand, compared to a loss of $203,702 thousand for the same period in 2024, indicating a significant increase in operational losses[51] Bitcoin Holdings and Performance - The company holds 553,555 bitcoins at a total cost of $37.90 billion, averaging $68,459 per bitcoin[6] - The company achieved a "BTC Yield" of 13.7% year-to-date, surpassing the full year 2025 target of 15%[6] - Year-to-date "BTC $ Gain" reached $5.8 billion, meeting 58% of the annual target of $10 billion[4] - The company increased its 2025 "BTC Yield" target from 15% to 25% and "BTC $ Gain" target from $10 billion to $15 billion[6] - The market value of Bitcoin holdings at the end of March 31, 2025, was approximately $43.55 billion, reflecting a significant increase from $41.79 billion at the end of December 31, 2024[47] - The company held 528,185 Bitcoins as of March 31, 2025, an increase from 447,470 Bitcoins as of December 31, 2024, representing a growth of approximately 18%[47] - The average purchase price per Bitcoin held increased from $62,503 at the end of December 31, 2024, to $67,457 at the end of March 31, 2025[47] Assets and Liabilities - Total current assets decreased from $252.32 million as of December 31, 2024, to $203.61 million as of March 31, 2025, representing a decline of approximately 19.3%[37] - Digital assets increased significantly from $23.91 billion as of December 31, 2024, to $43.55 billion as of March 31, 2025, marking an increase of approximately 82.5%[37] - Total liabilities rose from $7.61 billion as of December 31, 2024, to $10.39 billion as of March 31, 2025, indicating an increase of approximately 36.5%[37] - Stockholders' equity increased from $18.23 billion as of December 31, 2024, to $32.22 billion as of March 31, 2025, reflecting a growth of approximately 76.7%[37] - The Company held total assets of $43,919,760 thousand as of March 31, 2025, compared to $6,351,539 thousand as of March 31, 2024, indicating a significant increase in total assets[61] Cash Flow - Net cash used in operating activities was $(2.39) million for the three months ended March 31, 2025, compared to $28.59 million provided in the same period of 2024[39] - Net cash used in investing activities surged to $(7.67) billion for the three months ended March 31, 2025, compared to $(1.64) billion in the same period of 2024[39] - The company reported a net increase in cash, cash equivalents, and restricted cash of $22.36 million for the three months ended March 31, 2025, down from $35.06 million in the same period of 2024[39] Shareholder Information - The Company’s Assumed Diluted Shares Outstanding increased to 256,473,000 for the three months ended March 31, 2025, from 171,942,000 in the same period of 2024[35] - The diluted loss per common share for the three months ended March 31, 2025, was $16.53, compared to $0.83 for the same period in 2024, showing a dramatic increase in losses per share[53] Strategic Focus - The Company has dedicated certain corporate personnel to its bitcoin strategy, reflecting a strategic focus on enhancing its digital asset management[58] - The Chief Operating Decision Maker (CODM) uses net income (loss) to assess the profitability of the software business, indicating a focus on controllable costs for future budgeting[59]