The cryptocurrency market has regained momentum, with Bitcoin (BTCUSD) surging past $110,000 last week and flirting with its all-time high. With $9 billion in ETF inflows just last month, institutional giants are piling in. Plus, with President Donald Trump doubling down on Bitcoin, the leading cryptocurrency has a lot of support in 2025.
Amid this crypto storm stands Virginia-based MicroStrategy (MSTR), now rebranded as Strategy, which has doubled down on Bitcoin. Over the past week it snapped up another $1 billion worth, pushing its total to a jaw-dropping 592,100 coins. The bold move came as digital assets whipsawed through volatility sparked by rising conflict between Iran and Israel, underscoring Strategy’s unwavering bet on the world’s top crypto.
With $84 billion in capital earmarked through 2027, Strategy is not slowing down. Strategy remains one of the boldest ways to ride the crypto wave - an unapologetic bet on crypto’s rise that deserves a serious look from investors.
About Strategy Stock
Strategy (MSTR), founded by billionaire Michael Saylor, has reinvented itself as the ultimate Bitcoin vault. Its market cap currently stands at $104.5 billion.
Strategy has roared through 2025 with a 29.5% gain, leaving the S&P 500 Index’s ($SPX) modest 1.7% rise in its rearview. Zooming out, the story sharpens - over the past year, the stock has surged 149%, turning heads and tightening its grip as one of the market’s most explosive plays.
Strategy’s meteoric rise has catapulted the stock’s valuation to 225.9 times sales, far above its sector peers and historical average. The market’s strong belief in MicroStrategy’s Bitcoin strategy drives its high valuation, reflecting both the risk and appeal of its crypto-focused approach.
A Closer Look at Strategy’s Mixed Q1 Earnings Report
On May 1, Strategy dropped its fiscal 2025 first-quarter earnings, and like most things in crypto, the numbers told a tale of turbulence and bold ambition. Revenue dipped 3.6% year over year to $111.1 million, falling short of Wall Street’s estimates. But what really raised eyebrows was the ballooning net loss to $16.49 per share in Q1, a steep descent from just $0.31 a year ago.
Yet not all was bleak. Subscription services, Strategy’s under-the-radar engine, saw revenue surge 61.6% to $37.1 million, signaling that there’s more to this firm than just Bitcoin bravado. Liquidity also saw an uptick, with the company closing the quarter with $60.3 million in cash, up from $38.1 million in late 2024.
Analysts monitoring Strategy project the company to flip the script and generate a profit of $7.30 per share in 2025.
MicroStrategy’s High-Stakes Bitcoin Bet
Bitcoin’s rise from the fringes to the financial mainstream has been impressive. Once mocked by markets, it’s now embraced by institutions, governments, and retail traders alike. Spot ETF approvals in 2024, which unlocked billions in inflows, and pro-crypto policies added rocket fuel.
MicroStrategy’s aggressive Bitcoin strategy is a double-edged sword. On one side, it offers unmatched upside - Bitcoin’s rally could catapult the company’s value into uncharted territory. As the largest corporate holder of Bitcoin, Strategy becomes a high-volatility proxy for the crypto king, no longer just a business intelligence and analytics software firm.
Its $62.4 billion in BTC holdings far outweigh its software revenue. Recently, it bought 10,100 BTC for $1 billion - pushing its total to 592,100 BTC.
But here’s the catch. The core business - enterprise analytics – is not generating much cash, and BTC buys are funded mostly through stock offerings and debt, which risks shareholder dilution if BTC prices surge faster than Strategy’s stock. If market sentiment sours or crypto takes a hit, Strategy could be exposed, stuck with expensive Bitcoin and little room to maneuver.
What Do Analysts Expect for Strategy Stock?
Overall, Wall Street appears to be largely upbeat on MSTR stock, with a consensus “Strong Buy” rating. Of the 13 analysts offering recommendations, 11 are giving it a solid “Strong Buy,” one suggests a “Moderate Buy,” and the remaining one advocates a “Strong Sell.”
The average analyst price target of $534.77 indicates impressive 42% potential upside from the current price levels. The Street-high price target of $650 suggests that MSTR could rally as much as 73% from here.
