Is Strategy Stock's 1.93X PB Still Worth it? Buy, Sell, or Hold?

Core Insights - Strategy (MSTR) shares are currently overvalued with a Value Score of F, trading at a price/book ratio of 1.93X compared to MARA Holdings' 1.23X and Riot Platforms' 1.84X, indicating a premium valuation [1] - MSTR stock is trading below both the 50-day and 200-day moving averages, signaling a bearish trend [6][8] - Year-to-date, MSTR shares have appreciated 12.7%, underperforming the Zacks Financial-Miscellaneous Services industry's return of 3.9% and the Zacks Finance sector's return of 12.1% [9] - As of September 7, Strategy holds 638,460 bitcoins, making it the world's largest bitcoin treasury company [10] - MSTR's expected operating income for 2025 is $34 billion, with a net income of $24 billion, based on a bitcoin price of $150,000 [17] Valuation Comparison - MSTR shares have underperformed Riot Platforms but outperformed MARA Holdings and CleanSpark, with MARA Holdings dropping 5.4%, while Riot Platforms and CleanSpark shares increased by 60.6% and 8.9%, respectively [11] - The disciplined capital raising approach through preferred equity offerings, including STRK, STRF, Stride, and Stretch, is a key catalyst for MSTR [18] Financial Performance - MSTR has issued $10.7 billion in equities and $7.6 billion in fixed income securities year to date, with significant amounts raised through various convertible notes and offerings [19] - The Zacks Consensus Estimate for MSTR's loss for the third quarter of 2025 remains unchanged at 11 cents per share, compared to a loss of $1.56 in the same quarter last year [21] - For 2025, the consensus estimate for MSTR's loss is $15.73 per share, compared to a loss of $6.72 per share in 2024 [22] Market Conditions - Despite growing bitcoin holdings, MSTR faces challenges from a stretched valuation, difficult macroeconomic conditions, and tariff uncertainties that increase bitcoin trading volatility [23]