Strategy's Stock Surges 32% in April Ahead of Earnings Call

Strategy, formerly known as MicroStrategy, concluded April with a significant 32% increase in its stock price, marking its most substantial monthly gain since November. This surge comes as the company prepares for its first-quarter 2025 earnings call, scheduled for May 1. The anticipation surrounding this earnings call is fueled by speculation that Strategy may announce a major capital raise, given its continued expansion of Bitcoin holdings.

The company's stock closed at $380.11 on April 30, reflecting a 32% increase from its March 31 closing price of $288. This performance is particularly notable as it follows a 59% rise in November, driven by a rally in Bitcoin prices that saw the cryptocurrency reach $100,000 for the first time on December 5. The rally was triggered by Donald Trump’s election win in November.

Analysts are projecting a 1% year-on-year revenue increase to $116.6 million for the first quarter of 2025. This estimate represents a 3.40% decline compared to the previous quarter, where Strategy reported $120.7 million in revenue, marking a 3% year-on-year fall that missed analyst estimates by approximately $2 million. The firm reported a net loss of $670.8 million in the fourth quarter of 2024, as it added an additional 218,887 Bitcoin to its holdings.

Speculation about a significant capital raise has been fueled by comments from Apollo Sat's founder, Thomas Fahrer, who suggested that Strategy might announce a $100 billion capital raise during its earnings call. This speculation is supported by Strategy's recent announcement on March 10, where it entered into a new sales agreement to issue and sell shares of its 8% Series A perpetual strike preferred stock. This move is aimed at raising funds for general corporate purposes, including potential Bitcoin acquisitions.

As of the latest data, Strategy holds 553,555 Bitcoin, valued at approximately $52.57 billion. This substantial holding underscores the company's commitment to Bitcoin as a strategic asset. Richard Byworth, a partner at Syz Capital, has proposed that Strategy could take a more aggressive approach to acquiring Bitcoin by purchasing companies with significant cash holdings, thereby funding Bitcoin purchases without relying on over-the-counter buys.