Strategy Inc. (MSTR)
Strategy: Buy The Drop (Technical Analysis)(Rating Upgrade)
I am upgrading Strategy stock to a "buy" rating due to adjusted valuations and limited downside potential following significant declines from all-time highs. Despite disappointing Q4 earnings, Strategy's substantial increase in bitcoin holdings and favorable cryptocurrency market conditions present a strong investment opportunity. Comparative valuation metrics show Strategy's price-book ratio has become more reasonable, making it a viable option within the cryptocurrency stock peer group.
This stock could nearly double your money in 2025—here's why
MicroStrategy Inc (NASDAQ: MSTR) has already delivered close to 7x returns in the trailing 12 months – but a KBW analyst is convinced it has still significant room to the upside in 2025. Bill Papanastasiou assumed coverage of MSTR with an “outperform” rating on Friday.
Keep Calm And Follow The (Micro) Strategy
Strategy reported Q4 losses due to Bitcoin impairment charges, not reflective of true earnings; rebranded to focus on Bitcoin accumulation. New accounting measures will better reflect Bitcoin holdings' value; introduced Strike preferred stock for a perpetual call option on MSTR. MSTR aims for 15% BTC yield and $10 billion BTC gain, continuing aggressive Bitcoin buys and funding through the 21/21 plan.
MicroStrategy Rebrands, but It Is the Same Risky Investment
Because of its cryptocurrency hoarding strategy, MicroStrategy (NASDAQ:MSTR) is now a big deal.
MicroStrategy rebrands, reports significant loss for Q4 as it grew Bitcoin holdings
MicroStrategy Incorporated (NASDAQ:MSTR) announced it is rebranding as Strategy shortly before reporting a significant loss for the fourth quarter as it invested in growing its Bitcoin holdings. The company, which has become a Bitcoin proxy by accumulating significant holdings of the cryptocurrency, exited the quarter with approximately 447,470 Bitcoins with a market value of about $42 billion.
MicroStrategy rebrands as Strategy amid fourth straight quarterly loss
Strategy saw over $670 million in net losses while its Bitcoin expenses surged.
Strategy's Correlation With Bitcoin Breaks Down; I'm Out
(Micro)Strategy's stock rating is a hold due to the breakdown in correlation with Bitcoin prices, which undermines its primary investment appeal. The company's software business remains insignificant, with its value largely tied to its substantial Bitcoin holdings, now worth $44.1 billion. Strategy's capital structure includes $7.6 billion in liabilities and significant future equity dilution risks, making direct Bitcoin investment more attractive for now.
Should You, Like Saylor, Sell (Micro)Strategy For Bitcoin?
I still see MSTR as a "Bitcoin bank", but I believe the rebrand to "Strategy" may signal Saylor's lack of ideas on how to effectively monetize its BTC holdings. ATM offerings have diluted shareholders in fiat terms, but not in Bitcoin terms: MSTR's BTC per Share has increased by 74% in 2024. Despite good Bitcoin metrics, MSTR remains a leveraged bet on Bitcoin, dependent on whether the company can justify its rich NAV premium long-term.
Strategy (Formerly MicroStrategy) Q4 Earnings: Selling Volatility
MicroStrategy's re-branding and merchandise store signal the company's encouragement of dangerous emotional attachment to the stock. Strategy's declining software revenue and high volatility make the common stock a decent trading vehicle but a potentially dubious investment. Despite a healthy balance sheet, MSTR's volatility and premium to Bitcoin holdings make it a risky bet compared to Bitcoin itself.
MicroStrategy Incorporated (MSTR) Q4 2024 Earnings Call Transcript
MicroStrategy Incorporated (NASDAQ:MSTR ) Q4 2024 Earnings Conference Call February 5, 2025 5:00 PM ET Company Participants Shirish Jajodia - VP, IR & Treasury Phong Le - President & CEO Andrew Kang - Senior Executive Vice President & CFO Michael Saylor - Executive Chairman Conference Call Participants Shirish Jajodia Hello, everyone, and good evening. I am Shirish Jajodia, Corporate Treasurer and Head of Investor Relations at Strategy.
MicroStrategy Swings to Wider-Than-Expected Loss, Rebrands as ‘Strategy'
MicroStrategy (MSTR) reported a wider-than-expected loss for the fourth quarter and said it is changing its name to "Strategy."
Strategy reports earnings, increases Bitcoin holdings
CNBC's Tanaya Macheel joins 'Fast Money' to talk Strategy, formerly Microstrategy, quarterly results.
