MicroStrategy Stock Trades 32% Below 52-Week High: Buy, Sell or Hold?

Core Insights - MicroStrategy (MSTR) shares closed at $369.70, 32% below its 52-week high of $543, with a year-to-date appreciation of 27.6% [1][8] - The company is the largest bitcoin treasury holder, owning 592,100 bitcoins as of June 15, 2025, and recently acquired 10,100 bitcoins for $1.05 billion [2][10] - MSTR has outperformed other bitcoin-holding companies like MARA Holdings, Riot Platform, and Tesla, whose shares have dropped 14.6%, 6.4%, and 20.3% year-to-date, respectively [3][8] Stock Performance - MSTR stock is trading above the 200-day moving average, indicating a bullish trend [6][8] - Despite being 32% below its 52-week high, MSTR has surged 27.7% year-to-date [8] Bitcoin Holdings and Strategy - MSTR benefits from a strategic reserve policy established by the Trump administration, with bitcoin trading above $101K [10] - The company aims for a bitcoin yield of 25% for the full year, up from an initial target of 15%, with dollar gains from bitcoin reaching $5.8 billion as of April 28, 2025 [11] Capital Raising and Financial Strategy - MSTR has raised $6.6 billion through equity offerings and $3.4 billion through fixed income, with plans to raise $42 billion in both categories by the end of 2027 [12][13] - The company has issued $20.9 billion in equities and $6.4 billion in fixed income securities as part of its 21/21 plan [13] Subscription Revenue Growth - Software subscription revenues surged 62% year-over-year to $37.1 million, accounting for 33% of total revenues in Q1 2025 [14] - Subscription billings grew 38% year-over-year to $24.5 million, supported by the flagship Strategy One product [14][15] Partnerships and Market Position - MSTR's partnerships with major companies like Amazon Web Services, Microsoft, and Google are driving growth [16] Earnings Estimates - The Zacks Consensus Estimate for MSTR's loss for Q2 2025 remains steady at 12 cents per share, compared to a loss of 76 cents in the same quarter last year [17] - For 2025, the estimated loss is $15.73 per share, compared to a loss of $6.72 per share in 2024 [18] Valuation Concerns - MSTR shares are considered overvalued, with a Price/Book ratio of 3.0X compared to MARA's 1.35X and Riot's 1.16X, indicating a premium valuation [19][24]