Strategy (NASDAQ:MSTR) Releases Earnings Results, Misses Estimates By $22.26 EPS

Strategy (NASDAQ:MSTR) issued its quarterly earnings data on Thursday. The software maker reported ($24.45) EPS for the quarter, missing the consensus estimate of ($2.19) by ($22.26), FiscalAI reports. The firm had revenue of $122.37 million for the quarter, compared to analysts’ expectations of $122.90 million. Strategy had a negative net margin of 2,482.01% and a negative return on equity of 26.97%. Strategy’s revenue was up 6.9% on a year-over-year basis. During the same period in the prior year, the firm posted $32.52 EPS.

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

• Bitcoin holdings expanded significantly: Strategy held approximately 843,775 Bitcoin, acquired 83,901 during Q2, and increased Bitcoin per share by about 5% sequentially and 6% year over year.
• The company raised approximately $17 billion year to date, reduced long-term debt from $8.2 billion to $6.7 billion, and grew its cash and short-term investment reserve to $3.75 billion, providing more than two years of dividend and interest coverage.
• Q2 results were heavily affected by Bitcoin’s quarter-end price, producing an $8.6 billion net loss and negative EPS of $24.45, although management said the post-quarter recovery would imply an estimated $5.2 billion fair-value gain.
• STRC, Strategy’s flagship preferred security, was trading around $89.50 versus the company’s $99–$100 target, following a sharp June decline that management attributed to the withdrawal of leveraged credit lines and forced selling dynamics.
• Management plans to prioritize restoring STRC to par through a larger dollar reserve, potential buybacks, Bitcoin monetization, and careful dividend management, while remaining focused on consolidating its credit products rather than launching additional instruments.

Strategy Price Performance

MSTR stock traded up $4.41 during midday trading on Thursday, reaching $97.74. The company had a trading volume of 13,369,948 shares, compared to its average volume of 16,156,280. The company has a debt-to-equity ratio of 0.22, a current ratio of 6.05 and a quick ratio of 6.05. Strategy has a 1 year low of $81.81 and a 1 year high of $414.36. The company has a market capitalization of $34.25 billion, a P/E ratio of -2.43 and a beta of 3.54. The firm has a 50-day moving average price of $111.67 and a 200-day moving average price of $135.32.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the stock. Monness Crespi & Hardt reissued a “neutral” rating on shares of Strategy in a report on Tuesday, June 2nd. B. Riley Financial upped their price target on shares of Strategy from $200.00 to $215.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. TD Cowen lowered their price objective on Strategy from $400.00 to $260.00 and set a “buy” rating on the stock in a research report on Tuesday, June 30th. Citigroup reissued a “buy” rating and set a $136.00 price objective (down from $260.00) on shares of Strategy in a research note on Tuesday, June 30th. Finally, Zacks Research upgraded Strategy from a “strong sell” rating to a “hold” rating in a research report on Monday, July 6th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $266.31.

More Strategy News

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: Large Bitcoin position maintained: Strategy held 843,775 BTC as of July 26, representing a 25% increase from the start of 2026. The size of the treasury preserves MSTR’s high sensitivity to any Bitcoin recovery. Strategy Bitcoin holdings and stock performance
• Positive Sentiment: Liquidity reduces near-term financing concerns: Strategy built a $3.75 billion U.S. dollar reserve, enough to cover more than two years of preferred-stock dividends and interest obligations. It also repurchased $25 million of discounted STRC preferred shares, potentially helping restore investor confidence. Strategy Q2 liquidity and Bitcoin report
• Positive Sentiment: Bitcoin purchases could resume: After pausing acquisitions for more than a month and raising $3.75 billion in cash, management may have greater flexibility to restart accumulation. That possibility is supporting the core MSTR investment narrative. Strategy may resume Bitcoin purchases
• Neutral Sentiment: Management remains aligned with Bitcoin’s long-term outlook: Executive Chairman Michael Saylor argued that Bitcoin protocol changes should be rare and resisted proposals he believes could weaken network consensus. The comments reinforce Strategy’s long-term positioning but do not directly improve near-term earnings. Saylor comments on Bitcoin protocol changes
• Negative Sentiment: Q2 results were severely affected by Bitcoin’s decline: Strategy reported an $8.22 billion net loss, or $24.45 per share, versus a $10.02 billion profit a year earlier and an expected loss of $2.19 per share. Revenue rose 6.9% to $122.4 million but was slightly below estimates. Common-stock issuance also creates dilution, while the extended buying pause weakens the accumulation catalyst. Strategy Q2 earnings loss

Insider Transactions at Strategy

In related news, CEO Phong Le sold 93,738 shares of the company’s stock in a transaction on Friday, June 5th. The shares were sold at an average price of $118.73, for a total value of $11,129,512.74. Following the completion of the transaction, the chief executive officer directly owned 119,925 shares in the company, valued at approximately $14,238,695.25. The trade was a 43.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jarrod M. Patten sold 15,050 shares of the stock in a transaction on Friday, May 29th. The shares were sold at an average price of $154.94, for a total value of $2,331,847.00. Following the completion of the transaction, the director directly owned 28,000 shares in the company, valued at approximately $4,338,320. This represents a 34.96% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have purchased 11,166 shares of company stock valued at $1,014,265 and have sold 183,672 shares valued at $23,535,268. Insiders own 6.49% of the company’s stock.

Institutional Investors Weigh In On Strategy

Several hedge funds have recently added to or reduced their stakes in MSTR. State Street Corp increased its position in shares of Strategy by 2.3% during the 4th quarter. State Street Corp now owns 6,127,301 shares of the software maker’s stock valued at $931,043,000 after purchasing an additional 138,253 shares during the last quarter. Amundi lifted its position in Strategy by 373.7% in the 4th quarter. Amundi now owns 4,790,702 shares of the software maker’s stock worth $727,947,000 after buying an additional 3,779,340 shares during the last quarter. Invesco Ltd. boosted its stake in Strategy by 13.9% in the third quarter. Invesco Ltd. now owns 1,593,085 shares of the software maker’s stock worth $513,308,000 after buying an additional 194,987 shares in the last quarter. Northern Trust Corp boosted its stake in Strategy by 0.7% in the fourth quarter. Northern Trust Corp now owns 1,581,952 shares of the software maker’s stock worth $240,378,000 after buying an additional 11,629 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in Strategy by 19.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,493,816 shares of the software maker’s stock valued at $226,985,000 after acquiring an additional 242,582 shares during the last quarter. Institutional investors own 59.84% of the company’s stock.

Strategy Company Profile

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.