MicroStrategy’s first quarter results for 2025 missed Wall Street’s revenue and earnings expectations, but the market responded positively. Management attributed the quarter’s performance to the company’s ongoing transition from on-premises software to cloud-based services and, most notably, its aggressive Bitcoin accumulation strategy. President and CEO Phong Le highlighted that MicroStrategy now holds over 553,000 bitcoins, reflecting an accelerated pace of acquisition in recent months. CFO Andrew Kang pointed to continued growth in cloud subscription revenues, which partially offset declines in legacy software revenues, and noted that fair value accounting changes led to significant swings in reported earnings. Le emphasized, “We remain hyper focused on capital markets innovation and our Bitcoin operations to strategically accumulate more Bitcoin.”

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions MicroStrategy’s Q1 Earnings Call

• Lisa Ellis (MoffettNathanson) asked about the impact of Bitcoin price volatility on earnings. CFO Andrew Kang replied that fair value accounting provides more transparency but acknowledged it causes significant swings; he expressed confidence that long-term gains would outweigh short-term volatility.

• Mark Palmer (BTIG) questioned how MicroStrategy plans to maintain its lead as more companies adopt a similar Bitcoin treasury strategy. CEO Michael Saylor said broader adoption legitimizes the approach and that differentiation will come from scale, capital markets access, and continued product innovation.

• Alex Johnson (Piper Sandler) sought clarity on balancing equity dilution with fixed income issuance under the expanded capital plan. President and CEO Phong Le explained that all capital raises are evaluated for accretion on a Bitcoin-per-share basis, and that fixed income instruments can be even more accretive, provided the market matures.

• Noah Goldberg (JPMorgan) asked about the pace of capital raises and whether the company could reach its $42 billion target without excessive shareholder dilution. Le responded that as the company’s NAV rises, issuing equity becomes less dilutive, and improving fixed income market efficiency is key to balancing accretion and dilution.

• Michael Miller (Wells Fargo) inquired about the company’s approach to educating credit rating agencies and attracting new investor classes to its fixed income products. Saylor outlined ongoing efforts to provide transparent credit metrics and pursue credit ratings, aiming to broaden investor participation and reduce spreads.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be watching (1) the company’s progress in scaling issuance of fixed income products like Strike and Strife to support ongoing Bitcoin purchases, (2) continued growth in cloud subscription revenue offsetting legacy software declines, and (3) the evolution of investor and credit rating agency acceptance of MicroStrategy’s innovative capital structure. The pace of Bitcoin accumulation and market adoption by other corporates will also be key factors to monitor.

MicroStrategy currently trades at $427.80, up from $381.91 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

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