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1. Company Snapshot

1.a. Company Description

MicroStrategy Incorporated provides enterprise analytics software and services worldwide.It offers MicroStrategy, an enterprise platform, which provides a modern analytics experience by delivering insights across multiple devices to users via hyperintelligence products, visualization and reporting capabilities, mobility features, and custom applications developed on the platform; analysts and data scientists with seamless access to trusted, governed data directly within their tools; and APIs and gateways, multiple deployment options, enterprise semantic graph, scalability, and security.The company also provides MicroStrategy Support that helps customers to achieve their system availability and uptime goals, and to improve the overall experience through highly responsive troubleshooting and proactive technical product support.


In addition, it offers MicroStrategy Consulting that provides customers with architecture and implementation services to help them quickly realize results, and helps to achieve returns on investment derived from understanding of data; and MicroStrategy Education that offers free and paid learning options.The company provides its services through enterprise sales force and channel partners.It serves companies from a range of industries, including retail, consulting, technology, manufacturing, finance, banking, insurance, healthcare, education, and telecommunications, as well as the public sector.


The company was incorporated in 1989 and is headquartered in Tysons Corner, Virginia.

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1.b. Last Insights on MSTR

Breaking News: MicroStrategy Incorporated reported its fourth-quarter earnings on February 5. The company posted a quarterly loss of $42.93 per share, beating the estimated loss of $46.02. Revenue rose 1.9% to $123 million, exceeding the Wall Street consensus of $119 million. Software and subscription business showed solid growth, but a massive accounting-driven loss tied to Bitcoin holdings offset this. Analysts are cautious about the near-term risk of MSTR stock, citing the potential break of the MSCI metric. A hold recommendation is given by some analysts, while being mindful of the 2.5 years of dividend and interest coverage.

1.c. Company Highlights

2. Strong Financial Performance with Increasing Bitcoin Holdings

The company's latest financial performance showcases a significant increase in its Bitcoin holdings, with 640,808 Bitcoin, or over 3% of all Bitcoin ever to exist, reinforcing its dominance in the corporate Bitcoin treasury space. The company's EPS results showed $3.9 billion in operating income, $2.8 billion in net income, and earnings of $8.43 per share. The actual EPS came out at $8.42, beating estimates by $0.102. The company's Bitcoin per share measures the accretion of Bitcoin on a per share basis and has consistently increased since adopting its Bitcoin strategy in 2020, with a 3.5x increase over that period.

Publication Date: Nov -04

📋 Highlights
  • Bitcoin Holdings and Market Cap:: Strategy holds 640,808 Bitcoin (~3% of all Bitcoin) with a $83 billion market cap, positioning it among top U.S. public companies.
  • Financial Performance:: Q3 EPS of $8.43, $3.9 billion operating income, and $2.8 billion net income, with Bitcoin per share rising 4.2% to $41,370 since July 31.
  • Capital Raising and Credit Rating:: Raised $19.8 billion YTD to buy Bitcoin, including $6.7 billion via preferreds, and received a B- S&P credit rating, enhancing access to institutional capital.
  • 2025 Guidance:: Targets $150,000 Bitcoin price, 30% BTC yield, $34 billion operating income, and $80 EPS, with a 10.5% monthly dividend and tax-advantaged return of capital.
  • Digital Credit Instruments:: Launched Stretch with a 10.4% effective yield (16% tax-equivalent), leveraging Bitcoin to create scalable, tax-deferred fixed-income products competing with traditional credit markets.

Valuation Metrics

The company's valuation metrics indicate a mixed picture. The P/E Ratio stands at -107.37, while the P/B Ratio is 1.24, and the P/S Ratio is 160.0. The EV/EBITDA ratio is 7.65. The ROE is -1.67%, indicating a negative return on equity, while the ROIC is 10.88%. These metrics suggest that the company's valuation is influenced by its Bitcoin holdings and the market's perception of its growth prospects.

Capital Raising and Bitcoin Acquisition

The company has raised $19.8 billion in capital year-to-date to acquire more Bitcoin, with plans to reduce its reliance on convertible notes and instead season the preferred market. The company has been able to raise $6.7 billion through the preferred market, with a significant portion coming from the retail market. The company's efforts to raise capital and acquire more Bitcoin demonstrate its commitment to its Bitcoin strategy.

Regulatory Developments and Industry Trends

The passage of the GENIUS Act and government clarity on regulations have led to big banks embracing crypto, with Morgan Stanley dropping restrictions on wealth clients owning crypto funds. Citibank has launched coverage on the company's equity and provided a price target. These developments indicate a positive trend in the industry, with increasing acceptance of Bitcoin and crypto assets.

Guidance and Outlook

The company's 2025 guidance includes reaffirming a Bitcoin price of $150,000 at year-end, with a 30% BTC yield target and a $20 billion dollar gain target. Earnings guidance remains unchanged, with an operating income target of $34 billion, net income target of $24 billion, and EPS target of $80. Analysts estimate next year's revenue growth at 3.3%, indicating a positive outlook for the company's future performance.

3. NewsRoom

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Weekend Morning Brew: Big Tech's $650B AI Bet, Bitcoin Slides

Feb -07

Source: gurufocus.com

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MSTX: Might Get De-Listed

Feb -07

Source: seekingalpha.com

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Strategy Inc (MSTR) Q4 2025 Earnings Call Transcript

Feb -07

Source: seekingalpha.com

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Crypto's Rough Week Has Dragged on Bitcoin, Altcoins, DATs and Stocks. What's Next?

Feb -06

Source: investopedia.com

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Strategy: Premium Is Breaking Despite The MSCI News

Feb -06

Source: seekingalpha.com

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Why Strategy Stock Bounced Back Today

Feb -06

Source: fool.com

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Strategy: Almost Time To Be Greedy When Others Are Fearful

Feb -06

Source: seekingalpha.com

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Strategy Q4 Earnings Miss Estimates, Revenues Increase Y/Y

Feb -06

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.50%)

6. Segments

Software Business

Expected Growth: 11.5%

MicroStrategy's cloud-based business intelligence platform drives growth, fueled by increasing adoption of analytics in cloud computing, digital transformation, and need for data-driven decision making.

7. Detailed Products

MicroStrategy Analytics

A comprehensive analytics platform that enables users to connect to various data sources, create interactive dashboards, and perform advanced analytics.

MicroStrategy HyperIntelligence

A platform that enables users to inject analytics into their daily workflows, providing instant access to relevant data and insights.

MicroStrategy Mobile

A mobile app that provides secure, on-the-go access to analytics and reporting, enabling users to make informed decisions anywhere, anytime.

MicroStrategy Cloud

A cloud-based analytics platform that provides scalable, secure, and on-demand access to analytics and reporting capabilities.

MicroStrategy Embedded Analytics

A platform that enables developers to embed analytics and reporting capabilities into their applications, products, and services.

8. MicroStrategy Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

MicroStrategy Incorporated's products and services are highly specialized, making it difficult for substitutes to emerge. However, the increasing adoption of cloud-based analytics and business intelligence solutions poses a moderate threat of substitutes.

Bargaining Power Of Customers

MicroStrategy Incorporated's customers are largely enterprise-level organizations with complex analytics and business intelligence needs. This reduces their bargaining power, as they require customized solutions that only a few vendors can provide.

Bargaining Power Of Suppliers

MicroStrategy Incorporated has a diversified supplier base, and its suppliers do not have significant bargaining power. The company's strong brand and market position also reduce its dependence on any single supplier.

Threat Of New Entrants

The business intelligence and analytics market is highly competitive, and new entrants face significant barriers to entry. MicroStrategy Incorporated's established brand, extensive partner network, and large customer base make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The business intelligence and analytics market is highly competitive, with several established players vying for market share. MicroStrategy Incorporated faces intense competition from companies like Tableau, Qlik, and SAP, which can lead to pricing pressures and increased marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.32%
Debt Cost 3.95%
Equity Weight 49.68%
Equity Cost 18.95%
WACC 11.40%
Leverage 101.30%

11. Quality Control: MicroStrategy Incorporated passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ANSYS

A-Score: 5.4/10

Value: 0.8

Growth: 6.2

Quality: 8.6

Yield: 0.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Snowflake

A-Score: 4.6/10

Value: 4.0

Growth: 7.0

Quality: 3.7

Yield: 0.0

Momentum: 9.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Datadog

A-Score: 4.5/10

Value: 0.0

Growth: 9.7

Quality: 5.6

Yield: 0.0

Momentum: 8.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Coinbase

A-Score: 4.1/10

Value: 2.3

Growth: 6.8

Quality: 8.8

Yield: 0.0

Momentum: 5.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
HubSpot

A-Score: 3.8/10

Value: 2.5

Growth: 8.7

Quality: 5.7

Yield: 0.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
MicroStrategy

A-Score: 3.6/10

Value: 7.2

Growth: 0.6

Quality: 9.1

Yield: 0.0

Momentum: 2.5

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

134.93$

Current Price

134.93$

Potential

-0.00%

Expected Cash-Flows