Strategy Incorporated (MSTR)
NASDAQ:MSTR
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Strategy
(NASDAQ:MSTR)
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Rating:54Neutral
Price Target:
$170.00
â–²(2.09% Upside)
Action:Reiterated
Date:05/14/26
The score is held back primarily by weak and highly volatile fundamentals (large losses, negative operating cash flow, and low predictability), partially offset by a stronger balance sheet and improved leverage. Technicals are moderately supportive (positive momentum above key intermediate moving averages), and the earnings call was directionally constructive on strategy and funding optionality but still centered on substantial mark-to-market volatility risk. Valuation is constrained by a negative P/E and minimal dividend yield.
Positive Factors
Large Bitcoin Treasury
A massive corporate bitcoin reserve provides durable strategic optionality: it serves as an uncorrelated, high‑liquidity asset that can collateralize credit, support preferred dividends, be recycled for accretive BTC/share programs, and materially strengthen long‑term balance sheet flexibility.
Negative Factors
Negative Operating Cash Flow
Core business cash generation is inconsistent, with multi‑year negative operating cash flow raising concerns about the sustainability of software economics absent ongoing capital raises. Persistent negative OCF forces reliance on market financing and limits internal funding for growth.
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Positive Factors
Negative Factors
Large Bitcoin Treasury
A massive corporate bitcoin reserve provides durable strategic optionality: it serves as an uncorrelated, high‑liquidity asset that can collateralize credit, support preferred dividends, be recycled for accretive BTC/share programs, and materially strengthen long‑term balance sheet flexibility.
Read all positive factors
Strategy Key Performance Indicators (KPIs)
Any
Bitcoins Held
Shows the amount of Bitcoin the company holds, reflecting its strategic investment in cryptocurrency and potential exposure to crypto market volatility.
Shows the amount of Bitcoin the company holds, reflecting its strategic investment in cryptocurrency and potential exposure to crypto market volatility.
Data provided by:
The Fly
The FlyStrategy (MSTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.11B
Dividend Yield0.08%
Average Volume (3M)18.01M
Price to Earnings (P/E)―
Beta (1Y)1.43
Revenue Growth6.79%
EPS Growth-63.43%
CountryUS
Employees1,546
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-35.65
Shares Outstanding330,807,620
10 Day Avg. Volume15,975,098
30 Day Avg. Volume18,011,025
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)0.88
Price to Sales (P/S)93.61
P/FCF Ratio-428.55
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue112.77
Enterprise Value/Gross Profit165.56
Enterprise Value/Ebitda118.45
Forecast
1Y Price Target
$324.67Price Target Upside94.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)41.36
Revenue Forecast (FY)$500.63M
Strategy Business Overview & Revenue Model
Company Description
Strategy Inc, together with its subsidiaries, operates as a bitcoin treasury company in the United States, Europe, the Middle East, Africa, and internationally. The company offers investors varying degrees of economic exposure to Bitcoin by offeri...
How the Company Makes Money
Strategy generates revenue primarily from its enterprise analytics software business. Key revenue streams include: (1) Subscription and support revenue: recurring revenue from customers who subscribe to Strategy’s software offerings and pay for on...
Strategy Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational momentum: large and growing Bitcoin holdings (818k BTC), aggressive capital raises (~$11.7B YTD), rapid adoption and liquidity of the STRC product (~$8.5B outstanding, $375M/day trading), and clear strategic optionality (scenarios to accrete BTC per share, retire convertibles, and fund dividends). Key risks remain mark-to-market volatility (Q1 unrealized loss ~$14.5B and reported net loss $12.8B), compression of USD reserve coverage, and execution/communication risk around selling Bitcoin. Management presented multiple quantitative scenarios and stress tests and reiterated a long-term buy-and-hold thesis with active capital-markets tools. On balance, the positives — growth in BTC per share, rapid STRC adoption and liquidity, and diversified funding optionality — outweigh the near-term mark-to-market losses and volatility-related risks.Positive Updates
Largest Corporate Bitcoin Holder and Strong Balance Sheet
Held 818,334 Bitcoin (~3.9% of all Bitcoin), market capitalization of $62 billion, digital asset market value ~ $64B (as of May 1 price), average purchase price ~$70,000 per BTC, long-term debt unchanged at $8.2B, equity increased to $9B, and cash & cash equivalents (USD reserve) ~$2.2–2.25B — positioning the company as a well-capitalized corporate Bitcoin treasury.
Negative Updates
Large Noncash Loss Driven by Bitcoin Fair Value
Reported operating loss of $14.5B and net loss of $12.8B for Q1, primarily driven by an unrealized fair value decline in Bitcoin. Q1 ending digital asset value of $51.6B down from $58.9B at year-end (≈12.4% quarter decline), reflecting price-driven, noncash losses.
Read all updates
Q1-2026 Updates
Positive
Negative
Largest Corporate Bitcoin Holder and Strong Balance Sheet
Held 818,334 Bitcoin (~3.9% of all Bitcoin), market capitalization of $62 billion, digital asset market value ~ $64B (as of May 1 price), average purchase price ~$70,000 per BTC, long-term debt unchanged at $8.2B, equity increased to $9B, and cash & cash equivalents (USD reserve) ~$2.2–2.25B — positioning the company as a well-capitalized corporate Bitcoin treasury.
Read all positive updates
Company Guidance
Management guided a continued focus on disciplined capital markets and Bitcoin-per-share accretion, reporting Q1 metrics that underpin that plan: 818,334 BTC held (~3.9% of supply; market value ≈$64B; acquisition cost ≈$62B; avg purchase ≈$70k), operating loss $14.5B and net loss $12.8B (driven by a $14.5B unrealized fair‑value loss as BTC closed Q1 ≈$67.8k), BTC/ share up from 181,030 to 213,371 sats (+~18% YoY) with YTD BTC yield 9.4% (vs. 22.8% for 2025) and YTD BTC gains of 63,110 BTC (~$5B); the company raised ~$11.7B YTD (≈$8.5B STRC outstanding), bought 89,599 BTC in Q1 (~$7.3B at ~$80.9k) and 56,235 BTC Q2‑to‑date (~$4.1B at ~$73.4k), shows MNAV ≈1.27 (breakeven to sell common ≈1.22x), $13.5B preferred equity (34% amplification), net leverage ≈9% ($6B net debt; $8.2B convertibles), USD cash ≈$2.25B, implied BTC reserve coverage of 43 years at current size and a breakeven BTC ARR of ~2.3% to fund dividends forever—and signaled tactical use of STRC, equity issuance and selective BTC sales to reduce converts, grow the USD reserve, and accelerate BTC-per-share accretion (target: double BTC/share in seven years, ~10% annualized BTC yield).Strategy Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
72
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 490.47M | 477.23M | 463.46M | 496.26M | 499.26M | 510.76M |
| Gross Profit | 334.07M | 327.82M | 333.99M | 386.32M | 396.27M | 418.85M |
| EBITDA | 466.93M | -5.44B | -1.85B | -61.04M | -1.26B | -770.88M |
| Net Income | -12.36B | -4.03B | -1.17B | 429.12M | -1.47B | -535.48M |
Balance Sheet | ||||||
| Total Assets | 54.27B | 61.64B | 25.84B | 4.76B | 2.41B | 3.56B |
| Cash, Cash Equivalents and Short-Term Investments | 2.21B | 2.30B | 38.12M | 46.82M | 43.84M | 63.36M |
| Total Debt | 8.26B | 8.28B | 7.26B | 2.25B | 2.45B | 2.23B |
| Total Liabilities | 8.63B | 10.60B | 7.61B | 2.60B | 2.79B | 2.58B |
| Stockholders Equity | 45.64B | 51.04B | 18.23B | 2.16B | -383.12M | 978.96M |
Cash Flow | ||||||
| Free Cash Flow | 7.61B | -104.24M | -22.14B | -1.89B | -287.20M | -2.54B |
| Operating Cash Flow | -50.86M | -67.24M | -53.03M | 12.71M | 3.21M | 93.83M |
| Investing Cash Flow | -22.09B | -22.51B | -22.09B | -1.91B | -278.59M | -2.63B |
| Financing Cash Flow | 24.30B | 24.84B | 22.13B | 1.89B | 265.19M | 2.54B |
Strategy Technical Analysis
Neutral
166.52
Price Trends
153.86
Positive
149.89
Positive
214.70
Negative
Market Momentum
5.02
Positive
48.09
Neutral
10.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSTR, the sentiment is Neutral. The current price of 166.52 is below the 20-day moving average (MA) of 176.20, above the 50-day MA of 153.86, and below the 200-day MA of 214.70, indicating a neutral trend. The MACD of 5.02 indicates Positive momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 10.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MSTR.
Strategy Risk Analysis
Strategy disclosed 73 risk factors in its most recent earnings report. Strategy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Strategy Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $75.58B | 198.31 | 3.78% | ― | 29.54% | -21.11% | |
71 Outperform | $31.74B | 79.12 | 7.97% | ― | 13.28% | 31.76% | |
67 Neutral | $51.44B | 42.41 | 39.89% | ― | 17.80% | 2.09% | |
63 Neutral | $21.88B | -45.26 | -16.70% | ― | 24.74% | 49.81% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $57.87B | -53.27 | -60.27% | ― | 29.16% | -2.26% | |
54 Neutral | $58.11B | -0.83 | -24.09% | 0.08% | 6.79% | -63.43% |
* Technology Sector Average
MSTR
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Strategy Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Strategy Raises Equity to Expand Massive Bitcoin Holdings
Neutral
May 18, 2026
On May 18, 2026, Strategy Inc. reported an update on sales under its at-the-market offering program for the period from May 11 to May 17, 2026, highlighting that it sold 19,519,801 shares of its STRC preferred stock with a total face value of $1.9...
Business Operations and StrategyPrivate Placements and Financing
Strategy Repurchases $1.5 Billion of 2029 Convertible Notes
Neutral
May 15, 2026
On May 14, 2026, Strategy Inc. entered into privately negotiated transactions to repurchase approximately $1.50 billion in principal of its 0% Convertible Senior Notes due 2029 for an estimated $1.38 billion in cash, with the final price tied to t...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Strategy Expands Bitcoin Treasury Using ATM Equity Proceeds
Positive
May 11, 2026
On May 11, 2026, Strategy Inc. reported that between May 4 and May 10 it sold 1,412 shares of its STRC preferred stock for net proceeds of about $0.1 million and 231,324 shares of its MSTR Class A common stock for net proceeds of $42.9 million und...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Strategy Reports Q1 2026 Results and Bitcoin Treasury Expansion
Neutral
May 5, 2026
Strategy Inc., listed on Nasdaq and LuxSE, positions itself as the world’s first and largest Bitcoin Treasury Company, focusing on holding and managing substantial bitcoin reserves while engineering financial products tied to digital assets....
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Strategy Updates ATM Equity Sales and Bitcoin Holdings
Neutral
May 4, 2026
On May 4, 2026, Strategy Inc. reported an update on its at-the-market offering program for the period from April 27 to May 3, 2026, disclosing that it sold 492,210 shares of its MSTR Class A common stock, generating approximately $82 million in ne...
Business Operations and StrategyDividendsRegulatory Filings and Compliance
Strategy Maintains High Dividend Rate and Payout Guidance
Positive
May 1, 2026
On April 30, 2026, Strategy Inc. announced it would maintain an annual dividend rate of 11.50% on its Variable Rate Series A Perpetual Stretch Preferred Stock, effective for monthly periods beginning on or after May 1, 2026. The board also declare...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Strategy Boosts Bitcoin Holdings Using ATM Stock Sales
Neutral
Apr 27, 2026
On April 27, 2026, Strategy Inc. reported that between April 20 and April 26 it sold 1,451,601 shares of its MSTR Class A common stock under its at-the-market program, generating net proceeds of $255 million, while leaving substantial remaining is...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Strategy Raises Capital to Expand Bitcoin Holdings
Positive
Apr 20, 2026
On April 20, 2026, Strategy Inc. reported activity in its at-the-market offering program for the period from April 13 to April 19, 2026, highlighting that it sold 21,795,389 shares of its 10.00% Series A Perpetual Strife Preferred Stock for approx...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Strategy Raises $1B to Expand Bitcoin Holdings
Positive
Apr 13, 2026
On April 13, 2026, Strategy Inc. reported that, between April 6 and April 12, 2026, it sold 10,028,363 shares of its STRC preferred stock through its at-the-market program, generating approximately $1.00 billion in net proceeds while leaving tens ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Strategy Expands ATM Offering and Boosts Bitcoin Holdings
Negative
Apr 6, 2026
On April 6, 2026, Strategy Inc. reported recent activity under its at-the-market offering program, raising net proceeds of about $227.3 million from sales of STRC stock and $72 million from MSTR stock between March 30 and March 31, followed by a f...
Business Operations and StrategyDividends
Strategy Maintains High Dividend Rate on Preferred Stock
Positive
Apr 1, 2026
On March 31, 2026, Strategy Inc. announced it would maintain an 11.50% annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock for monthly periods starting April 1, 2026, and declared a cash dividend of $0.958333333 pe...
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsRegulatory Filings and Compliance
Strategy Highlights Bitcoin Holdings and Litigation Resolution Update
Neutral
Mar 30, 2026
On March 30, 2026, Strategy Inc. reported that it neither sold shares under its at-the-market equity program nor purchased additional bitcoin during the period from March 23 to March 29, 2026. As of March 29, the company held about 762,099 bitcoin...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Strategy Rebalances Preferred Equity Structure and ATM Programs
Neutral
Mar 23, 2026
On March 23, 2026, Strategy Inc. expanded its Omnibus Sales Agreement by adding Moelis Company, A.G.P./Alliance Global Partners and StoneX Financial as additional sales agents, while putting in place new ATM programs for its Class A common stock,...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Strategy Raises Equity to Further Expand Bitcoin Holdings
Neutral
Mar 23, 2026
On March 23, 2026, Strategy Inc. reported that between March 16 and March 22, 2026, it sold 509,111 shares of its MSTR Class A common stock under its at‑the‑market offering, generating net proceeds of $76.5 million, while leaving more ...
Business Operations and StrategyPrivate Placements and Financing
Strategy Raises Capital to Expand Bitcoin Holdings
Positive
Mar 16, 2026
On March 16, 2026, Strategy Inc. reported that between March 9 and March 15 it sold 11,818,467 shares of its 10.00% Series A Perpetual Strife Preferred Stock for approximately $1.18 billion in net proceeds and 2,833,668 shares of its Class A commo...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Strategy Expands ATM Program and Increases Bitcoin Holdings
Positive
Mar 9, 2026
On March 9, 2026, Strategy Inc. reported that between March 2 and March 8, 2026, it sold 3,776,205 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock for notional value of $377.6 million, generating net proceeds of $377.1 milli...
Business Operations and StrategyDividendsPrivate Placements and FinancingRegulatory Filings and Compliance
Strategy Boosts Preferred Dividend Amid Ongoing Bitcoin Expansion
Positive
Mar 2, 2026
Between February 23 and March 1, 2026, Strategy Inc. reported activity under its at-the-market offering, selling 71,590 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock for net proceeds of $7.1 million and 1,730,563 shares of...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Strategy Expands Bitcoin Holdings Using Recent Equity Offering
Neutral
Feb 23, 2026
Between February 17 and February 22, 2026, Strategy Inc. reported that under its at-the-market offering program it sold 297,940 shares of its Class A common stock, generating net proceeds of $39.7 million, while making no sales of its various seri...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.