Core Insights - MicroStrategy (MSTR) is set to report its second-quarter 2025 results on July 31, with expected revenues of $112.15 million, reflecting a year-over-year growth of 0.64% and a projected loss of 12 cents per share, unchanged over the past 30 days [1][9] Group 1: Bitcoin Holdings and Acquisitions - MicroStrategy is the world's largest bitcoin treasury company, holding 607,770 Bitcoins as of July 20, 2025, with recent acquisitions of 6,220 Bitcoins for $739.8 million and 10,100 Bitcoins for $1.05 billion [3][9] - The company is expected to benefit from the Trump administration's announcement regarding a strategic bitcoin reserve, contributing to the increasing acceptance of bitcoin as a non-sovereign asset [4] Group 2: Financial Performance and Projections - The bitcoin yield for MicroStrategy was 13.7% year-to-date as of April 28, 2025, with a full-year target of 25% and a bitcoin dollar gain target of $15 billion, having reported gains of $4.1 billion in Q1 2025 and $5.8 billion as of April 28, 2025 [5] - Software subscription revenues surged 62% year-over-year to $37.1 million, accounting for 33% of total revenues in Q1 2025, with subscription billings growing 38% year-over-year to $24.5 million [6] Group 3: Stock Performance and Valuation - MicroStrategy shares have returned 39.4% year-to-date, outperforming the Zacks Computer & Technology sector's return of 11.3% and the Zacks Computer Software industry's 19.4% [7] - The company's current valuation is considered stretched, with a Price/Book ratio of 3.43X, higher than MARA Digital's 1.62X and Riot Platform's 1.76X [11] Group 4: Regulatory Environment and Future Plans - The passing of the GENIUS Act on July 17 provides a favorable legal background for stablecoins, which, along with other pending regulations, is expected to benefit MicroStrategy despite bitcoin's volatility [16] - The company plans to raise $42 billion through equity issuance and $42 billion through fixed income securities by the end of 2027, with $21.1 billion in equity and $35.6 billion in fixed income securities remaining to be issued [18] Group 5: AI and Cloud Services Expansion - MicroStrategy is expanding its AI capabilities with the launch of Mosaic, an AI-powered Universal Intelligence Layer, aligning with its shift toward cloud-first, subscription-based services [19]

Core Insights - MicroStrategy (MSTR) shares have appreciated 131% in the trailing 12 months, outperforming the Zacks Computer - Software industry and Zacks Computer and Technology sector which returned 22.2% and 22.8% respectively [1] Group 1: Bitcoin Holdings - MicroStrategy is the world's largest bitcoin treasury company, holding 607,770 Bitcoins as of July 20, 2025, and acquired 6,220 Bitcoins for $739.8 million in July [2][9] - Other notable companies holding bitcoins include MARA Holdings with 47,531 bitcoins, Riot Platform with 19,223 bitcoins, and Tesla with 11,509 bitcoins [2] Group 2: Stock Performance - MSTR shares have outperformed Tesla and Riot Platform, which saw increases of 42.7% and 26.3% respectively, while MARA Holdings shares dropped 21.9% over the same period [3] - MSTR stock is currently trading above the 200-day moving average, indicating a bullish trend [7] Group 3: Revenue and Growth - Subscription revenue surged 62% year over year to $37.1 million, driven by Mosaic AI and rising demand for Strategy One cloud tools [9][16] - Subscription billings grew 38% year over year to $24.5 million, with the company benefiting from growing software subscription revenues [16] Group 4: Strategic Initiatives - The company is expanding AI capabilities with the launch of Mosaic, an AI-powered Universal Intelligence Layer, aligning with its shift toward cloud-first, subscription-based services [15] - MicroStrategy's disciplined approach to capital raising through preferred equity offerings has raised $6.6 billion through equity offerings and $3.4 billion through fixed income [12][14] Group 5: Market Conditions and Valuation - The company benefits from the growing acceptance of bitcoin as a non-sovereign asset and higher institutional adoption, although bitcoin's volatility poses challenges [11] - MSTR shares are considered overvalued with a Price/Book ratio of 3.0X compared to MARA Holdings' 1.63X and Riot Platforms' 1.78X, indicating a premium valuation [21][26]

Key Takeaways MSTR has surged 27.7% YTD, outperforming MARA, RIOT, and TSLA despite trading 32% below its 52-week high. Strategy holds 592,100 Bitcoins, benefiting from strategic reserve policy by the Trump administration. Subscription revenues rose 62% YOY in Q1, driven by Strategy One.MicroStrategy (MSTR) , doing business as “Strategy,” shares closed at $369.70 on Friday, 32% below the 52-week high of $543 it hit on Nov. 21, 2024. Strategy shares have appreciated 27.6% year to date (YTD), while the Zack ...