MicroStrategy Incorporated (NASDAQ:MSTR) is set to release its quarterly earnings with an anticipated EPS of approximately -$0.11 and projected revenue of $116.6 million.
Despite a negative EPS forecast, Strategy’s minimal debt-to-equity ratio of 0.006 and its performance against Bitcoin highlight its strong market position.
MicroStrategy Incorporated (NASDAQ:MSTR) is set to release its Q1 2025 earnings on May 1, 2025, with analysts anticipating an earnings per share (EPS) of -$0.11 and revenue of $116.6 million. The company’s significant Bitcoin investments have driven substantial stock volatility, with its shares declining over 10% in 2025, underperforming Bitcoin in recent months.
Despite a negative EPS outlook, MicroStrategy’s unique position as the largest corporate Bitcoin holder, with minimal operational debt relative to its Bitcoin-driven valuation, underscores its high-risk, high-reward market stance. MicroStrategy Incorporated (NASDAQ:MSTR), now doing business as Strategy, is a leading business intelligence company known for its AI-powered enterprise analytics software and its pioneering strategy of holding Bitcoin as a primary treasury asset. As the company prepares for its quarterly earnings announcement, analysts expect an EPS of -$0.11, reflecting ongoing losses from operations and Bitcoin-related accounting adjustments, with projected revenue of $116.6 million, consistent with its software business performance.
In the realm of digital assets, Bitcoin has delivered triple-digit returns in 2020 (+303%), 2023 (+154%), and 2024 (+139%), with a five-year return of approximately 956% from April 2020 to April 2025. MicroStrategy, holding 553,555 BTC valued at ~$46 billion as of April 2025, has amplified Bitcoin’s performance through leveraged investments, achieving a ~3,083% stock increase over the same five-year period. However, in 2025, Strategy’s stock has declined over 10%, from $300.11 to $259.40 per share, and 47% since its November 2024 peak, underperforming Bitcoin due to a reduced leverage ratio and market volatility.
Despite the negative EPS forecast, Strategy’s stock remains a focal point for investors due to its Bitcoin strategy, funded by $18.8 billion in equity offerings and $6.2 billion in convertible notes. The company’s debt-to-equity ratio, estimated at 0.1–0.2, reflects significant debt from Bitcoin acquisitions but is moderate relative to its ~$96–101 billion market capitalization. A current ratio of approximately 0.71 suggests potential challenges in meeting short-term obligations, raising concerns about liquidity given its focus on long-term Bitcoin holdings.
The divergence between Strategy and Bitcoin’s performance has been notable in 2025. While Bitcoin faced volatility, Strategy’s stock experienced sharper declines, partly due to a lower leverage ratio (recently below 13% compared to a historical 20–25%) and investor concerns over its “21/21 Plan” to raise $42 billion for further Bitcoin purchases. This trend highlights the risks of Strategy’s leveraged exposure to Bitcoin, despite its long-term outperformance.
