Strategy (NASDAQ:MSTR) Issues Earnings Results

Strategy (NASDAQ:MSTR) announced its earnings results on Thursday. The software maker reported ($42.93) earnings per share for the quarter, missing the consensus estimate of $46.02 by ($88.95), Zacks reports. Strategy had a net margin of 1,667.09% and a return on equity of 20.98%. The firm had revenue of $122.99 million for the quarter, compared to the consensus estimate of $117.42 million. During the same period in the prior year, the business earned ($3.03) EPS. The company’s quarterly revenue was up 1.9% compared to the same quarter last year.

Here are the key takeaways from Strategy’s conference call:

• 713,502 Bitcoin on the balance sheet (about 3.4% of total supply) after adding ~225,000 BTC in 2025, underscoring continued disciplined accumulation and Strategy’s position as the largest corporate Bitcoin holder.
• Reported a Q4 operating loss of $17.4 billion and net loss of $12.6 billion (full-year net loss $4.2 billion), driven by mark-to-market accounting on Bitcoin which produced large quarterly volatility in results.
• Strengthened liquidity and credit profile in 2025 via >$25 billion raised (including $6.9 billion of preferreds), an S&P B‑minus issuer rating, and a newly established $2.25 billion USD cash reserve that covers ~2.5 years of dividend obligations.
• Launched and scaled flagship digital‑credit product “Stretch” (Nasdaq‑listed) — paid monthly, target price $100, ~11.25% dividend yield, ~7% volatility and deep trading liquidity — positioned to attract fixed‑income investors and stabilize company funding.
• Long‑term strategy centers on issuing digital credit to “amplify” common equity and grow Bitcoin‑per‑share (management models show scenarios to roughly double or more Bitcoin per share over seven years), making BTC accumulation + digital credit the company’s core growth thesis.

Strategy Price Performance

Shares of NASDAQ:MSTR opened at $106.99 on Friday. The company has a market cap of $30.74 billion, a price-to-earnings ratio of 4.98 and a beta of 3.54. The business has a 50 day moving average price of $163.15 and a 200 day moving average price of $262.24. The company has a quick ratio of 0.66, a current ratio of 0.66 and a debt-to-equity ratio of 0.16. Strategy has a twelve month low of $104.17 and a twelve month high of $457.22.

Wall Street Analysts Forecast Growth

MSTR has been the topic of a number of research reports. Monness Crespi & Hardt upgraded shares of Strategy from a “sell” rating to a “neutral” rating in a report on Monday, November 10th. HC Wainwright lowered their target price on Strategy from $521.00 to $475.00 and set a “buy” rating on the stock in a research note on Monday, November 3rd. Wall Street Zen raised Strategy from a “sell” rating to a “hold” rating in a research report on Saturday, January 31st. Benchmark reiterated a “buy” rating on shares of Strategy in a report on Monday, December 1st. Finally, TD Cowen restated a “buy” rating on shares of Strategy in a report on Thursday, January 15th. Twelve analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Strategy has a consensus rating of “Moderate Buy” and a consensus target price of $411.87.

Key Strategy News

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Company still controls a very large bitcoin reserve (713,502 BTC) and added coins in January — a long‑term asset base that underpins the firm’s bitcoin‑treasury thesis. Strategy Reports 713,502 BTC Holdings
• Positive Sentiment: At least one major analyst (TD Cowen) has maintained a Buy thesis and a high long‑term target, signaling some investors/analysts still view MSTR as a leveraged Bitcoin play with upside if BTC recovers. Analyst Maintains Buy Rating
• Positive Sentiment: Management updated its dividend framework and reiterated liquidity/capital actions intended to support dividend and operations — messaging aimed at calming investors about cash and capital structure. Dividend Framework Update
• Neutral Sentiment: Core software/analytics revenue slightly beat estimates (Q4 revenue ~$123M vs. ~$117M expected), but that business is small relative to BTC exposure and cannot offset mark‑to‑market swings. Q4 Revenue Note
• Negative Sentiment: Q4 produced a headline net loss (reported ~$12.4B) driven by unrealized BTC markdowns — a direct result of Bitcoin’s sharp decline during the quarter. That accounting shock is the primary driver of the share selloff. $12.4B Loss Report
• Negative Sentiment: Other outlets report an even larger operating loss figure (~$17.4B) from Q4 markdowns — magnifying concerns about earnings volatility and headline damage. $17.4B Operating Loss
• Negative Sentiment: Market reaction: shares hit new lows and plunged on the news, driven by fear the company’s leverage/financing model (significant convertible debt and preferred/tied capital) could force asset sales if BTC weakens further. Market Reaction and Leverage Risks
• Negative Sentiment: Analyst target cuts and vocal short‑seller/critic commentary intensified sell pressure (e.g., Canaccord cut target ~60%; short sellers and media questioned management’s “don’t sell” policy). That raises near‑term sentiment risk even if the balance sheet remains solvent. Analyst Target Cut

Insider Activity at Strategy

In other news, EVP Wei-Ming Shao sold 5,334 shares of the business’s stock in a transaction dated Wednesday, November 12th. The shares were sold at an average price of $226.36, for a total transaction of $1,207,404.24. Following the transaction, the executive vice president owned 32,726 shares in the company, valued at approximately $7,407,857.36. The trade was a 14.01% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Jane A. Dietze bought 1,100 shares of Strategy stock in a transaction that occurred on Friday, November 21st. The stock was bought at an average price of $95.28 per share, with a total value of $104,808.00. Following the purchase, the director owned 2,600 shares of the company’s stock, valued at $247,728. This trade represents a 73.33% increase in their position. The SEC filing for this purchase provides additional information. In the last ninety days, insiders purchased 7,112 shares of company stock worth $984,888 and sold 13,177 shares worth $2,843,166. Corporate insiders own 8.46% of the company’s stock.

Institutional Investors Weigh In On Strategy

Several large investors have recently made changes to their positions in the company. CIBC Bancorp USA Inc. bought a new position in shares of Strategy in the third quarter valued at approximately $6,129,000. Sunbelt Securities Inc. increased its holdings in Strategy by 210.8% during the 3rd quarter. Sunbelt Securities Inc. now owns 1,349 shares of the software maker’s stock valued at $435,000 after purchasing an additional 915 shares in the last quarter. Captrust Financial Advisors raised its position in Strategy by 26.8% in the 3rd quarter. Captrust Financial Advisors now owns 12,561 shares of the software maker’s stock valued at $4,047,000 after purchasing an additional 2,657 shares during the last quarter. Coldstream Capital Management Inc. boosted its stake in Strategy by 26.6% in the third quarter. Coldstream Capital Management Inc. now owns 2,199 shares of the software maker’s stock worth $708,000 after purchasing an additional 462 shares in the last quarter. Finally, Livforsakringsbolaget Skandia Omsesidigt boosted its stake in Strategy by 41.7% in the third quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 1,700 shares of the software maker’s stock worth $548,000 after purchasing an additional 500 shares in the last quarter. Institutional investors own 59.84% of the company’s stock.

About Strategy

Strategy, formerly known as MicroStrategy, Incorporated (NASDAQ: MSTR) is a global provider of enterprise analytics and mobility software. The company’s flagship platform offers business intelligence, data discovery, and advanced visualizations that enable organizations to analyze large volumes of data and deliver actionable insights. In addition to traditional on-premises deployments, Strategy provides a range of cloud-based services and managed offerings that allow customers to leverage the power of its analytics tools without managing complex infrastructure.

Founded in 1989 by Michael J.