Strategy (MSTR) Shares Climb 7% as Market Braces for High-Stakes Earnings
Strategy Inc. (NASDAQ: MSTR), the world’s largest publicly listed holder of Bitcoin, is hitting the pause button on its unrelenting quest to
Quick overview
- Strategy Inc. has paused its Bitcoin purchases ahead of its Q1 2026 financial report, with no buys planned for this week.
- The company recently acquired 3,273 Bitcoin for approximately $255 million, bringing its total holdings to 818,334 BTC.
- Analysts expect a significant quarterly loss of $18.98 per share, largely due to Bitcoin price volatility affecting reported earnings.
- Despite concerns over its preferred dividend structure, the majority of analysts maintain a positive outlook on MSTR stock.
Strategy Inc. (NASDAQ: MSTR), the world’s largest publicly listed holder of Bitcoin BTC/USD, is hitting the pause button on its unrelenting quest to accumulate the cryptocurrency, at least for now, as the firm prepares to disclose its first quarter 2026 financial report on Tuesday after market close.
Executive Chairman Michael Saylor said on Sunday on X, where he often indicates the company’s Bitcoin purchasing intentions, that there would be “No buys this week.” The break comes after a busy April in which Strategy bought 3,273 Bitcoin for ~$255 million between April 20 and 26, per an SEC filing. The corporation now controls a massive 818,334 BTC at an average buy price of $77,906 per coin, or an average cost basis of $75,537 per Bitcoin.
The April buys, together with inflows into U.S. spot Bitcoin ETFs, helped Bitcoin’s price soar approximately 12% throughout the month. CoinGecko data showed Bitcoin trading at about $78,787 as of Sunday.
MicroStrategy Earnings in Focus: Deep Losses Expected
Wall Street is poised for another big quarterly loss. Yahoo Finance poll of analysts expects loss of $18.98 per share for Q1 2026 compared to loss of $16.49 per share in the same time last year. The expanding deficit is almost entirely due to Strategy’s mark-to-market Bitcoin accounting, which means reported earnings are very closely tied to fluctuations in crypto values – a system that tends to produce huge headline numbers regardless of how the company is actually performing operationally.
For the Strategy software business, the sole direct revenue stream is predicted to see year-over-year revenue increase of about 9.8% in this quarter, a robust recovery from sales falling 3.6% in Q1 2025. Last quarter the company posted revenues of $123 million, meeting analyst estimates but missing on EBITDA.
Full-year 2025 results painted a mixed picture: Strategy posted a net loss of $42.93 a share, much worse than the $0.08 consensus projection, mainly due to fair-value accounting and Bitcoin price volatility. But the corporation also realized $8.9 billion in gains on its holdings of Bitcoin, and increased its portfolio by over 100,000 BTC over the course of the year.
Skeptics Circle the STRC Dividend
Some analysts are worried about the Strategy’s perpetual preferred instrument, STRC, which has an 11.5% dividend yield. Critics wonder if the corporation can sustain those payouts over the long haul without continually diluting common shareholders by selling its stock.
Peter Schiff, chief economist at Euro Pacific Asset Management and a long-time critic of Bitcoin, resumed his attacks on Sunday, calling the STRC structure “Ponzi-like” and challenging the soundness of betting that Bitcoin’s yearly appreciation will reach 11.5%. Meanwhile, Seeking Alpha analyst Joseph Parrish noted that Strategy has insufficient cash to fund two years of STRC dividends, and gave MSTR a “Hold” recommendation owing to high leverage and unclear catalysts.
Strategy (MSTR) Stock Outlook: Bulls Still Dominate on Wall Street
The dominant analyst opinion remains rather upbeat, although there are some negative voices. According to TipRanks, 15 out of 18 analysts covering MSTR rank it a “Strong Buy,” one “Moderate Buy,” and two “Hold.” The average 12-month price objective is over $373, which would be more than 100% upside from the stock’s present price of about $177, which has itself jumped 38% over the last month alone.
Saylor is due to talk at the Consensus conference in Miami Beach on Wednesday where he’ll no doubt add further insight to the company’s Bitcoin strategy and long-term ambition.
Shares of MSTR closed Friday up 7.08% at $177.17 and dipped slightly in after-hours trading to $176.59.
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