MicroStrategy Incorporated (MSTR)
UndervaluedFundamental
28
Price
$153.09
Market Cap
$64.20B
Part 1 · What the company is worth
Overview
Strategy, formerly MicroStrategy, began as a maker of business-intelligence and analytics software that companies use to build dashboards and reports from their own data. Since 2020 it has become primarily known as a corporate treasury built around Bitcoin: it has raised billions of dollars through stock and debt sales specifically to buy and hold bitcoin, and now holds hundreds of thousands of coins. The software business still generates revenue and cash flow, but Bitcoin holdings, not software sales, now dominate the company's balance sheet and market value.
How it makes money
The software business earns money from subscription and cloud services, older-style perpetual license sales being phased out, and support/maintenance fees on existing licenses — a small, roughly flat-to-declining revenue base of a few hundred million dollars a year. Alongside it, Strategy raises new capital by issuing shares and convertible debt and uses the proceeds to buy more bitcoin, whose fair-value changes now flow through the income statement and dwarf the software business's results; reported profit or loss in a given period is driven mainly by bitcoin's price, not by software sales.
Competitive moat
No identified moat · NoneThe software segment is a small, mature player in a market dominated by much larger business-intelligence providers such as Microsoft, Salesforce and Oracle, with no scale, brand or switching-cost advantage strong enough to be called durable. Whatever edge the company has today comes almost entirely from its bitcoin balance sheet, not from a defensible position in its original product line.
What drives demand
CyclicalThe company's results are now driven almost entirely by the price of bitcoin, which swings far more than a typical business cycle, rallying and falling by large percentages within months. The small software business, by contrast, follows the ordinary enterprise-IT spending cycle, but it is now too small relative to the bitcoin holdings to meaningfully offset those swings.
Key risks
- Bitcoin price risk — Reported profit or loss and the balance-sheet value of the company's main asset are now driven by bitcoin's market price, which is highly volatile and entirely outside the company's control.
- Leverage and dilution — The strategy has been funded with large amounts of debt and repeated stock issuance, which dilutes existing shareholders and creates repayment obligations against an asset, bitcoin, that generates no cash flow of its own.
- Regulatory risk on digital assets — Changes in how regulators treat corporate bitcoin holdings, custody arrangements, or accounting rules could materially affect the company's reported results or ability to operate its strategy.
- Declining legacy software business — The original software segment, now a small part of the business, has faced years of competitive pressure from larger vendors and a difficult shift from license to subscription revenue.
The case for
Buyers see the company as a leveraged, liquid way to gain exposure to bitcoin's price without buying it directly, and expect that continued institutional demand for bitcoin, combined with the company's ability to keep raising capital against its holdings, will keep growing its bitcoin-per-share over time.
The case against
Sellers worry that the strategy is essentially a leveraged bet funded by debt and repeated share issuance, that a sustained fall in bitcoin's price would hit both the balance sheet and the ability to refinance, and that the original software business is too small and competitively weak to provide a cushion if the bitcoin strategy goes wrong.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users
Power BI is the volume leader in enterprise analytics and displaces MicroStrategy's dashboarding and reporting platform in the same large-company IT budgets.
Its Tableau division sells the same self-service visualization and enterprise BI deployments MicroStrategy bids for, often to the same Fortune 500 data teams.
Oracle Analytics Cloud is bundled with the database and ERP stack that large customers already run, taking analytics spend MicroStrategy would otherwise win.
An independent analytics vendor named in MicroStrategy's own filings, competing head-on for enterprise BI platform contracts in hybrid and on-premise environments.
A pure-play cloud BI vendor selling dashboards and data apps to the same mid-size and large enterprise buyers MicroStrategy targets.
MicroStrategy's 10-K says it competes for capital with other companies holding bitcoin as a treasury reserve asset, and Metaplanet raises money from the same investors seeking leveraged bitcoin exposure through a listed share.
Balance Sheet & Liquidity
Revenue
$498M
Trailing 12 months (through 6/30/2026)
Net Income
$-30.41B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$-75M
Total Equity
$44.12B
Total Liabilities
$10.60B
Current Ratio
5.39
Interest Coverage
-
Debt/EBITDA
-
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$229.87
Current Price
$153.09
Margin of Safety
+33.4%
Fair Value Range
$218.37 - $241.36
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
-
ROE
-8.7%
P/B Ratio
1.88
P/FCF
-
Gross Margin
67.6%
ROIC
-55.2%
Profitability Radar
Value Creation (Economic Moat)
ROIC
-55.2%
WACC
16.2%
ROIC − WACC
-71.4 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (7)
- Price CAGR 23.45%
- Gross Margin 67.6%
- P/B Ratio 1.88
- Debt/Equity ratio
- Current Ratio
- Low reliance on intangibles
- Analyst Consensus 88% Buy
Failed (11)
- EPS shows upward trend
- ROIC -55.2%
- Operating Margin -7295.4%
- Positive Free Cash Flow
- Return on Tangible Assets
- DCF valuation (Unknown)
- ROE -60.8%
- Revenue Growth 5Y -0.1%
- Earnings Surprise avg -627.5%
- Share Dilution 31.2%
- Piotroski F-Score 3/9
Unavailable (9)
- P/FCF NaN
- Dividend Payout NaN%
- CapEx intensity
- Interest Coverage
- Debt/EBITDA
- Price below Graham Number
- PEG Ratio (need PE > 0 and growth > 0)
- Earnings Quality (OCF/Net Income)
- Net Margin Trend (invalid data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
Low quality: investigate accounting
Share Dilution
Issuing new shares, diluting ownership
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Michael J. Saylor | Executive Chairman | 60 |
| Mr. Phong Q. Le | President, CEO & Director | 48 |
| Mr. Andrew Kang | Executive VP, CFO & Principal Accounting Officer | 49 |
| Mr. Thomas C. Chow Esq. | Executive VP, General Counsel & Corporate Secretary | 46 |
| Mr. Reza Virasteh | Executive Vice President of Operations | - |
| Ms. Ponna Arumugam | Executive VP & CTO | - |
| Mr. Chaitanya Jain | Head of Investor Relations | - |
| Ms. Joty Paparello | Executive VP & Chief Human Resource Officer | - |
| Mr. Saurabh Abhyankar | Executive VP & Chief Product Officer | - |
| Mr. Jeremy Price | Senior Vice President of Financial Planning & Analysis | - |
Audit Risk
9
Board Risk
10
Compensation Risk
6
Shareholder Rights Risk
9
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-19
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-03
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-10-01
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for MSTR, sourced from Markets Gazette.
- 3d agoNEGATIVEAzioni Strategy (MSTR) calano mentre la società acquista 1,665 BTC
Strategy Inc. (formerly MicroStrategy) shares dipped 0.75% following the announcement of an additional 1,665 Bitcoin purchase for approximately $142.7 million. The acquisition, made between September 21-27 at an average price of $85,681 per BTC, brings the company's total Bitcoin holdings to 847,666 BTC. These holdings are now valued at roughly $70.6 billion, with an average acquisition cost of $75,437 per Bitcoin. Despite the continued accumulation of Bitcoin, the immediate market reaction saw a slight decline in the stock price, indicating investor caution or a potential disconnect between the company's strategy and short-term stock performance.
- 10d agoPOSITIVELe azioni Strategy volano dell'8% mentre la società riprende gli acquisti di Bitcoin
MicroStrategy Inc. (MSTR) shares surged 8% on Monday following the company's resumption of Bitcoin purchases after a two-week hiatus. The company acquired an additional 950 Bitcoin for approximately $75.7 million in the week ending September 20th, at an average price of $79,670 per Bitcoin. This latest acquisition brings MicroStrategy's total Bitcoin holdings to 846,000 BTC, with an average cost of $75,416 per coin. The news also mentioned continued repurchases of STRC preferred stock. For investors, this signals renewed conviction in the company's Bitcoin strategy and potential upside from its substantial digital asset reserves.
- 16d agoNEGATIVELe azioni di Strategy (MSTR) scendono del 5% mentre il Clarity Act si blocca
Strategy Inc. (formerly MicroStrategy) shares fell 5% on Tuesday following a decline in Bitcoin, as the U.S. Senate failed to advance the Digital Asset Market Clarity Act. This legislative setback for comprehensive cryptocurrency regulation, supported by digital asset industry leaders, has negatively impacted crypto-related stocks. Coinbase shares dropped 10% after the vote. The stalled Clarity Act creates pressure for crypto-linked equities, with Congress expected to adjourn this month. Investors are reassessing the regulatory landscape's impact on companies heavily invested in digital assets.
- 28d agoPOSITIVEStrategy e Coinbase in rally mentre Bitcoin riconquista $80,000
Strategy Inc. (formerly MicroStrategy) shares surged over 15% on Thursday, mirroring Bitcoin's ascent above $80,000. Coinbase Global Inc. also saw a significant boost, with its stock climbing more than 10% to surpass $193. This broad rally in crypto-related equities is directly linked to Bitcoin's nearly 5% gain in the past 24 hours, reaching $80,982.09. The cryptocurrency market's upward movement coincided with lower Treasury yields and a weaker dollar, suggesting a favorable macroeconomic environment for risk assets. Investors are closely watching these trends for potential continued upside in digital asset-linked stocks.
- 8/31/2026POSITIVEStrategy (MSTR) avanza dopo la ripresa degli acquisti di Bitcoin dopo 10 settimane
Strategy Inc. (formerly MicroStrategy) saw its stock price climb on Monday following the resumption of its Bitcoin acquisition strategy. The company announced it purchased 4,603 BTC for approximately $369.7 million between August 24th and August 30th, ending a 10-week hiatus. The average price paid was $80,318 per Bitcoin. This latest acquisition was funded through the sale of Strategy's Class A common stock under its at-the-market program, with the company selling 4,531,421 MSTR shares for roughly $602.8 million during the same period. The move signals renewed confidence in Bitcoin's potential by the company's leadership.
- 8/27/2026POSITIVEPerché il titolo Strategy (MSTR) guadagna il 12% oggi
MicroStrategy (MSTR) shares surged over 12% on Thursday, propelled by Bitcoin's ascent past $80,000. This rally underscores the market's perception of MSTR as a leveraged equity proxy for Bitcoin, given its substantial holdings. Despite mixed analyst ratings, with Bernstein lowering its price target to $350 while maintaining an 'Outperform' rating, the overarching positive sentiment towards Bitcoin's prospects appears to be the dominant driver for MSTR's stock performance. The Nasdaq Composite and S&P 500 also saw gains, but MSTR's outperformance highlights its strong correlation with cryptocurrency movements.
- 8/24/2026POSITIVEMSTR sale mentre Strategy mantiene Bitcoin e crea riserva da $1,59 mld
MicroStrategy (formerly Strategy) did not purchase Bitcoin last week but utilized a stock sale of approximately $2 billion to bolster its liquidity. This strategic move occurred as Bitcoin experienced a significant surge, climbing nearly 25% in the past week and nearing $80,000. MicroStrategy's stock saw a notable increase of about 7.2% on Monday, ultimately closing up 2.5% for the day and a substantial 34% over the week, outperforming crypto-exposed peers like Coinbase and Robinhood. The company has built a cash pool of $1.59 billion, according to an SEC filing, positioning itself to manage its Bitcoin holdings effectively amidst market volatility.
- 8/24/2026NEUTRALStrategy launches $1.6B cash pool after $2B common shares raise, maintains hold on BTC buys
MicroStrategy has successfully raised $2 billion through the sale of common shares, bolstering its cash reserves to approximately $1.59 billion. Despite this significant capital infusion, the company has maintained its Bitcoin holdings at 840,447 BTC and has not engaged in new Bitcoin purchases. This strategic move suggests a cautious approach to further Bitcoin accumulation, prioritizing liquidity and potentially awaiting more favorable market conditions or specific investment opportunities. Investors will monitor future capital allocation decisions closely.
- 8/21/2026POSITIVEAzioni crypto MARA, COIN, Strive, MSTR in rally con l'avvio del bull run, ma i rischi restano
MicroStrategy Incorporated (MSTR) is experiencing a significant rally, alongside other crypto-related stocks like MARA Holdings, Coinbase, and CleanSpark. This surge is primarily driven by the ongoing recovery in Bitcoin and major altcoins. MSTR's stock has seen substantial gains, reflecting the broader positive sentiment in the cryptocurrency market. The upward trend is expected to continue if the crypto rally gains further momentum, indicating a strong correlation between digital asset performance and these equity investments. Investors are closely watching the crypto market's trajectory for further upside potential in these stocks.
- 8/20/2026POSITIVEPrevisioni MSTR: rally di Bitcoin e aumento degli afflussi ETF
MicroStrategy Inc. (MSTR) shares experienced a significant surge, reaching $115.65 in pre-market trading, a level not seen since June 22nd and representing a 40% increase from its year-to-date low. This rally is closely tied to the broader recovery in Bitcoin prices and a positive shift in market sentiment, as indicated by the Crypto Fear and Greed Index entering the 'greed' zone at 61. The associated YieldMax MSTR Option Income Strategy ETF (MSTY) also saw gains, climbing to $13.95. The strong performance suggests that MSTR is benefiting from the renewed optimism in the cryptocurrency market, potentially signaling a positive outlook for investors.
via Markets Gazette