Strategy Inc 9% Perp Stretch PFD Registered Shs Series A (STRC)
NASDAQ:STRC
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Strategy Inc 9% Perp Stretch PFD Registered Shs Series A
(NASDAQ:STRC)
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Rating:50Neutral
Price Target:
$92.00
Action:N/A
Date:06/17/26
The score is held down primarily by weak financial performance (large losses and negative operating cash flow) and a technically bearish setup (trading below key moving averages with negative MACD). Partially offsetting this are a very high dividend yield and a generally constructive earnings-call narrative emphasizing capital-market traction and a defined strategy, albeit with substantial volatility and demand-dependence risks.
Positive Factors
Scale of Bitcoin Treasury
Owning the largest corporate Bitcoin reserve is a durable strategic asset: it creates differentiated exposure, optionality to monetize or collateralize reserves, and a high barrier to replicate. This scale underpins long-term BTC-per-share accretion goals and supports capital strategies across market cycles.
Negative Factors
Weak Operating Cash Flow
Persistent negative operating cash flow and lumpy FCF reduce financial durability: the core software business is not reliably funding operations, increasing dependence on capital markets and STRC issuance to meet obligations and limiting latitude for organic investment or buffers against BTC drawdowns.
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Positive Factors
Negative Factors
Scale of Bitcoin Treasury
Owning the largest corporate Bitcoin reserve is a durable strategic asset: it creates differentiated exposure, optionality to monetize or collateralize reserves, and a high barrier to replicate. This scale underpins long-term BTC-per-share accretion goals and supports capital strategies across market cycles.
Read all positive factors
Strategy Inc 9% Perp Stretch PFD Registered Shs Series A (STRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.44B
Dividend YieldN/A
Average Volume (3M)3.69M
Price to Earnings (P/E)―
Beta (1Y)0.12
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,534
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-35.65
Shares Outstanding104,894,710
10 Day Avg. Volume3,510,558
30 Day Avg. Volume3,690,253
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)0.88
Price to Sales (P/S)93.61
P/FCF Ratio-1.98
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue82.93
Enterprise Value/Gross Profit121.76
Enterprise Value/Ebitda-2.91
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Strategy Inc 9% Perp Stretch PFD Registered Shs Series A Business Overview & Revenue Model
Company Description
MicroStrategy, Inc. specializes in delivering advanced software solutions for enterprise analytics and mobility. The company's operations encompass the creation, enhancement, promotion, and distribution of these software platforms, which are made ...
How the Company Makes Money
Strategy Inc. generates revenue primarily from its enterprise software business and related services, including (1) software licenses/subscriptions for its analytics and business intelligence offerings, and (2) associated support, maintenance, and...
Strategy Inc 9% Perp Stretch PFD Registered Shs Series A Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call highlighted substantial commercial and product momentum—large BTC holdings (818k BTC), rapid STRC growth (>$8.5B AUM), strong capital raises (~$11.7B YTD), BTC-per-share accretion (~18% YoY) and multiple accretive capital strategies. These positives were balanced against large noncash Q1 losses driven by BTC price declines (operating loss $14.5B), mark-to-market volatility, tax accounting swings, and dependence on continued STRC demand amid high Bitcoin volatility. Management presented clear mitigation levers (continued accumulation, optionality across STRC/MSTR/debt, stress testing, plan to reduce converts) and an optimistic multi-scenario outlook. On balance, the highlights—ongoing BTC accumulation, rapid product adoption, strong liquidity, and strategic optionality—outweigh the lowlights that are largely market-price driven and noncash, resulting in an overall constructive tone.Positive Updates
Largest Corporate Bitcoin Holder
Holdings of 818,334 BTC (~3.9% of all Bitcoin ever to exist); market capitalization ~$62B; total BTC market value ~ $64B as of May 1, 2026 (BTC price ~$78,035).
Negative Updates
Large Noncash Losses Driven by Bitcoin Price
Reported operating loss of $14.5B and net loss of $12.8B in Q1 2026, primarily due to an unrealized fair-value decline in Bitcoin (Q4 market value based on ~$87,500 BTC vs Q1-end ~$67,800 BTC drove the $14.5B unrealized loss).
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Q1-2026 Updates
Positive
Negative
Largest Corporate Bitcoin Holder
Holdings of 818,334 BTC (~3.9% of all Bitcoin ever to exist); market capitalization ~$62B; total BTC market value ~ $64B as of May 1, 2026 (BTC price ~$78,035).
Read all positive updates
Company Guidance
Management’s guidance was to keep raising capital responsibly and buy-and-hold Bitcoin to grow BTC per share (YTD capital raised $11.7B; holdings 818,334 BTC, ~3.9% of supply; BTC per share 213,371 sats, up ~18% YoY from 181,030), with a stated objective to double BTC per share in seven years (~10% annualized BTC yield target). They reiterated explicit digital-credit targets (STRC issuance targeted at 10–20% of BTC reserves), proposed moving STRC dividends from monthly to semimonthly, and highlighted key STRC metrics (11.5% dividend yield, $8.5B outstanding, ~$375M daily volume, Sharpe ~2.53, target price $99–$101). Balance-sheet guidance emphasized modest leverage and liquidity (cash ~$2.2–2.25B USD reserve, net debt ≈$6B, net leverage ~9–9.3%, long-term debt $8.2B, equity ≈$58–59B), focus on MNAV-driven decisions (breakeven ≈1.22x, current MNAV ≈1.27) and a BTC breakeven ARR ≈2.27%, and using tactical trades—including selling STRC to buy BTC or retire converts or selling BTC when accretive—to drive higher modeled BTC yields (examples given: 12.2% BTC yield at 1.22x MNAV, 14.6% at 2.0x MNAV; a 20% STRC issuance case implies ~$12.8B STRC, modeled 17.7% BTC yield and +144,000 BTC), while acknowledging recent results (Q1 operating loss $14.5B, net loss $12.8B, Q1 end digital assets $51.6B, Q1 BTC buys 89,599 BTC ≈$7.3B at ~$80.9k avg).Strategy Inc 9% Perp Stretch PFD Registered Shs Series A Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
24
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 | -13.97B | -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 | 4.52B | -22.58B | -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 Inc 9% Perp Stretch PFD Registered Shs Series A Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
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.