Want to see MSTR full AI Analyst Report?
Top Page
Strategy
(NASDAQ:MSTR)
Select Model
Select Model
Rating:50Neutral
Price Target:
$112.00
â–²(22.18% Upside)
Action:Reiterated
Date:08/21/26
The score is held down primarily by very weak and volatile financial performance (deep TTM losses and negative operating cash flow) despite strong revenue growth and improved leverage. Technicals are mixed with neutral momentum and a short-term bounce that still sits below longer-term trend levels. Valuation is pressured by loss-making results and the lack of a dividend yield, while corporate updates modestly support the score through strengthened liquidity actions but also underscore high bitcoin-driven volatility and continued funding dependence.
Positive Factors
Strong Revenue Growth and Gross Margin
Strong top-line expansion and healthy gross margin indicate continued demand for Strategy’s software and analytics operations, providing a durable operating foundation even though bitcoin-related accounting effects currently obscure underlying business performance.
Negative Factors
Severe Losses and Bitcoin Earnings Volatility
Bitcoin dominates reported financial results, making profitability highly sensitive to digital-asset prices rather than operating execution. This volatility can impair retained capital, complicate forecasting, and weaken confidence in sustainable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth and Gross Margin
Strong top-line expansion and healthy gross margin indicate continued demand for Strategy’s software and analytics operations, providing a durable operating foundation even though bitcoin-related accounting effects currently obscure underlying business performance.
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
$40.06B
Dividend Yield0.08%
Average Volume (3M)22.63M
Price to Earnings (P/E)―
Beta (1Y)1.84
Revenue Growth7.79%
EPS Growth-742.51%
CountryUS
Employees1,539
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-95.95
Shares Outstanding364,585,500
10 Day Avg. Volume14,923,980
30 Day Avg. Volume22,625,023
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.88
Price to Sales (P/S)93.61
P/FCF Ratio-1.98
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$257.75Price Target Upside181.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)-20.92
Revenue Forecast (FY)$496.95M
Strategy Business Overview & Revenue Model
Company Description
Strategy (formerly MicroStrategy) is a U.S.-based company that operates in enterprise software/analytics and bitcoin treasury management. Historically, the company has focused on business intelligence (BI) and analytics offerings—providing tools a...
How the Company Makes Money
Strategy generates revenue primarily from its enterprise analytics software business. Key revenue streams historically include: (1) Software licensing/subscription revenue from its analytics/BI platform and related products (recognized based on co...
Strategy Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call emphasized multiple record operating metrics (originations, fundings, total and net investment income), strong liquidity and reduced leverage, robust portfolio capital raises, and recurring contributions from the Adviser business. Credit metrics showed modest deterioration (small increase in lower-grade loans, one additional non-accrual) and expenses rose due to variable compensation and taxes, but these negatives are limited in magnitude relative to the positive operational momentum. Management reiterated disciplined underwriting and conservative balance sheet posture while possessing the liquidity and platform scale to capitalize on market opportunities.Positive Updates
Record Originations and Fundings
First half 2026 originations of $2.74B, up 35.6% year-over-year; record fundings of $1.35B, up 8.5% year-over-year. Q2 new commitments were over $927M and gross fundings were over $647M, funding 39 companies (9 new borrowers).
Negative Updates
Slight Credit Migration Toward Lower Grades
Weighted average internal credit rating increased to 2.17 from 2.11 in Q1. Grade 1 and 2 credits declined to 65.4% from 70.5% QoQ, while Grade 3 credits rose to 32.7% from 28.6%.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Originations and Fundings
First half 2026 originations of $2.74B, up 35.6% year-over-year; record fundings of $1.35B, up 8.5% year-over-year. Q2 new commitments were over $927M and gross fundings were over $647M, funding 39 companies (9 new borrowers).
Read all positive updates
Company Guidance
Hercules guided to Q3 core yields of 11.8%–12% and prepayments normalizing to $200–$300 million (vs. $572.1M in Q2), with originations expected to be seasonally lower and back‑end weighted; interest expense is expected to be broadly stable or up slightly vs. Q2 (Q2 interest expense $31.1M, WAC of debt 5.2%). Management expects gross SG&A of $25M–$26M with an RIA expense allocation of ~$4.7M and a quarterly RIA dividend of roughly $2.0–2.5M, noted that 98% of the debt portfolio is floating with ~75% of prime‑based loans at contractual floors (muting rate sensitivity), and emphasized strong liquidity (BDC available liquidity $652.9M, platform >$1B) and recent issuance of $325M of 6.3% notes due 2031 to repay debt and fund originations.Strategy Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
66
Positive
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 498.35M | 477.23M | 463.46M | 496.26M | 499.26M | 510.76M |
| Gross Profit | 336.89M | 327.82M | 333.99M | 386.32M | 396.27M | 418.85M |
| EBITDA | -21.77B | -5.44B | -1.85B | -61.04M | -1.26B | -770.88M |
| Net Income | -30.41B | -3.85B | -1.17B | 429.12M | -1.47B | -535.48M |
Balance Sheet | ||||||
| Total Assets | 52.56B | 61.64B | 25.84B | 4.76B | 2.41B | 3.56B |
| Cash, Cash Equivalents and Short-Term Investments | 2.45B | 2.30B | 38.12M | 46.82M | 43.84M | 63.36M |
| Total Debt | 6.77B | 8.28B | 7.26B | 2.25B | 2.45B | 2.23B |
| Total Liabilities | 7.24B | 10.60B | 7.61B | 2.60B | 2.79B | 2.58B |
| Stockholders Equity | 45.33B | 51.04B | 18.23B | 2.16B | -383.12M | 978.96M |
Cash Flow | ||||||
| Free Cash Flow | 11.34B | -22.58B | -22.14B | -1.89B | -287.20M | -2.54B |
| Operating Cash Flow | -20.09M | -67.24M | -53.03M | 12.71M | 3.21M | 93.83M |
| Investing Cash Flow | -22.42B | -22.51B | -22.09B | -1.91B | -278.59M | -2.63B |
| Financing Cash Flow | 24.11B | 24.84B | 22.13B | 1.89B | 265.19M | 2.54B |
Strategy Risk Analysis
Strategy disclosed 72 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $53.02B | 36.38 | 49.42% | ― | 18.88% | 46.42% | |
72 Outperform | $49.01B | 61.28 | 10.41% | ― | 13.70% | 76.27% | |
67 Neutral | $44.10B | -832.90 | -4.39% | ― | 26.02% | 81.08% | |
66 Neutral | $112.65B | -91.28 | -57.21% | ― | 31.07% | 16.46% | |
65 Neutral | $83.85B | 467.72 | 4.57% | ― | 31.52% | 37.42% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $40.06B | -1.17 | -60.79% | 0.08% | 7.79% | -742.51% |
* Technology Sector Average
MSTR
Strategy
112.39
-225.19
-66.71%
ADSK
Autodesk
251.02
-35.04
-12.25%
WDAY
Workday
197.32
-30.26
-13.30%
TEAM
Atlassian
174.91
10.32
6.27%
DDOG
Datadog
232.55
103.40
80.06%
SNOW
Snowflake
321.29
126.61
65.03%
Strategy Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Strategy Sells MSTR Shares to Fund Preferred Actions
Neutral
Aug 17, 2026
On August 17, 2026, Strategy Inc. reported that between August 10 and August 16, 2026 it sold 3,458,866 shares of its MSTR Class A common stock through its at-the-market program, generating $333.7 million in net proceeds and leaving $21.7 billion ...
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and Financing
Strategy Raises Capital and Adjusts Bitcoin, Stock Holdings
Positive
Aug 10, 2026
On August 10, 2026, Strategy Inc. reported that, between August 3 and August 9, it raised $653.1 million in net proceeds through sales of 6,585,682 shares of its MSTR class A common stock under its at-the-market program, with most of the funds boo...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Strategy boosts USD reserves and maintains preferred dividends
Positive
Aug 3, 2026
Between July 27 and August 2, 2026, Strategy Inc. reported activity under its at-the-market program, selling 3,011,361 shares of its MSTR class A common stock for net proceeds of $290.6 million, while leaving substantial remaining issuance capacit...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Strategy Highlights Q2 Bitcoin Losses and Monetization Strategy
Negative
Jul 30, 2026
For the second quarter ended June 30, 2026, Strategy reported an operating loss of $8.33 billion and a net loss of $8.22 billion, largely driven by an $8.32 billion unrealized loss on digital assets following a sharp bitcoin price decline, even as...
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Strategy Enhances Liquidity Through Recent Equity Transactions
Positive
Jul 27, 2026
Between July 20 and July 26, 2026, Strategy reported selling 5,429,160 shares of its MSTR Class A common stock under its at-the-market offering program, generating net proceeds of $544.5 million, while leaving significant remaining capacity for fu...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Strategy boosts liquidity via ATM stock sales
Positive
Jul 20, 2026
Between July 13 and July 19, 2026, Strategy Inc. reported that it sold 2,732,318 shares of its MSTR Class A common stock through its at-the-market program, generating net proceeds of $263.5 million, while leaving substantial remaining issuance cap...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Strategy Inc boosts liquidity via major stock sale
Positive
Jul 13, 2026
On July 13, 2026, Strategy Inc. reported that between July 6 and July 12 it sold 4,818,781 shares of its MSTR Class A common stock through its at-the-market program, generating net proceeds of $466.7 million while leaving $23.79 billion of capacit...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Strategy updates bitcoin sales and reserve position
Negative
Jul 6, 2026
On June 30, 2026, Strategy’s Vice President and Chief Accounting Officer, Jeanine Montgomery, retired, and the board designated Executive Vice President and Chief Financial Officer Andrew Kang as principal accounting officer effective at the...
Business Operations and StrategyStock BuybackDividendsPrivate Placements and Financing
Strategy Launches Digital Credit Capital and BTC Framework
Positive
Jun 29, 2026
On June 29, 2026, Strategy Inc. unveiled a new Digital Credit Capital Framework aimed at strengthening its preferred Digital Credit Securities, including STRC, and bolstering liquidity while maintaining long-term bitcoin exposure. The framework in...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Strategy Raises Capital to Expand Bitcoin Holdings
Positive
Jun 22, 2026
Strategy Inc. reported that between June 15 and June 21, 2026, it sold 2,714,839 shares of its MSTR Stock under its at-the-market program, generating net proceeds of $335.5 million while leaving substantial remaining issuance capacity across its p...
Business Operations and StrategyDividendsRegulatory Filings and ComplianceShareholder Meetings
Strategy Adopts Semi-Monthly Dividend Schedule for STRC Preferred
Positive
Jun 15, 2026
On June 15, 2026, Strategy filed an amended and restated certificate of designations for its STRC preferred stock in Delaware, following stockholder approval at its June 8, 2026 annual meeting, to move from one to two scheduled dividend payment da...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Strategy Raises Capital to Expand Bitcoin Holdings, Boost Liquidity
Positive
Jun 15, 2026
On June 15, 2026, Strategy reported that between June 8 and June 14, 2026, it sold 1,732,553 shares of its MSTR Class A common stock through its at-the-market program, generating net proceeds of $209 million while leaving more than $25.7 billion o...
Business Operations and StrategyExecutive/Board ChangesDividendsRegulatory Filings and ComplianceShareholder Meetings
Strategy Shareholders Approve Directors, Auditors and Preferred Changes
Positive
Jun 10, 2026
At its June 8, 2026 annual meeting, Strategy Inc. stockholders elected eight directors to serve for the next year and ratified KPMG LLP as the independent registered public accounting firm for the fiscal year ending Dec. 31, 2026. Investors also a...
Business Operations and StrategyDividendsShareholder Meetings
Strategy Shareholders Approve Changes to Preferred Dividends
Neutral
Jun 8, 2026
On June 8, 2026, Strategy Inc. held its 2026 Annual Meeting of Stockholders, with voting based on shares outstanding as of the April 17, 2026 record date. Stockholders of both the Company’s common stock and its Variable Rate Series A Perpetu...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Strategy expands bitcoin holdings using new equity funding
Positive
Jun 8, 2026
Between June 1 and June 7, 2026, Strategy Inc. reported that it raised $181 million in net proceeds through sales of 1,409,600 shares of its Class A common stock under an at-the-market offering, while leaving significant remaining capacity for fut...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Strategy Highlights Bitcoin Holdings and Preferred Dividend Actions
Positive
Jun 1, 2026
On June 1, 2026, Strategy Inc. reported that, under its at-the-market offering program, it sold 801,994 shares of its MSTR Class A common stock between May 26 and May 31, 2026, generating net proceeds of $128.3 million while leaving more than $26 ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Strategy Highlights Debt Reduction and Bitcoin Reserve Strategy
Positive
May 26, 2026
On May 26, 2026, Strategy Inc reported the completion of a series of capital-markets and bitcoin transactions carried out between May 11 and May 25, 2026, centered on repurchasing $1.5 billion of 0% Convertible Senior Notes due 2029 for approximat...
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.