Microstrategy (MSTR) reported a net loss of $4.2 billion for the first quarter, primarily due to unrealized losses on its Bitcoin holdings under the new FASB fair value accounting rules. The announcement was made on Thursday afternoon. These rules now allow gains from Bitcoin price increases to be reflected in net income.
Despite the loss, Microstrategy's stock traded higher on Friday after the company unveiled its "42/42 Plan" to raise $84 billion. This plan aims to accelerate Bitcoin purchases through common equity and fixed income instruments by 2027. The company already owns over 550,000 BTC, valued at approximately $52 billion at current prices.
Analysts from Mizuho Securities and Bernstein maintain positive ratings on MSTR, citing its first-mover advantage and scalability as a Bitcoin investment vehicle. Mizuho reiterated a "buy" rating with a $650 price target, while Bernstein maintained an "outperform" rating with a $600 target. Strategy's stock traded higher by 3.3% to $394.48 at publication time, according to The Block's MSTR price data.