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Is MSTR Stock Still a Buy? Inside Strategy’s Bitcoin Bet and AI Push
MSTR Stock – MicroStrategy Incorporated (MSTR), now operating under the brand name “Strategy,” is grabbing headlines as its stock price has surged an impressive 131% over the past 12 months. This explosive performance outpaces not only the broader Zacks Computer – Software industry, which returned 22.2%, but also the Zacks Computer and Technology sector, which gained 22.8%. Strategy’s performance cements its position as one of the top-performing tech stocks in the current market, driven by a unique combination of aggressive Bitcoin accumulation and AI-driven innovation.
Strategy: The World’s Largest Bitcoin Treasury
Strategy has become the world’s largest corporate Bitcoin holder, with a staggering 607,770 BTC on its balance sheet as of July 20, 2025. This unmatched reserve demonstrates the company’s commitment to digital assets, and its aggressive acquisition strategy continues to attract attention. In just the month of July, Strategy purchased an additional 6,220 Bitcoins for approximately $739.8 million, further expanding its already massive holdings.
Other corporate players also hold Bitcoin, though in significantly smaller amounts. As of March 31, 2025, MARA Holdings reported 47,531 BTC, while Riot Platforms held 19,223 BTC. Meanwhile, Tesla, once a leader in corporate Bitcoin adoption, reported 11,509 BTC at the end of Q2 2025. Strategy’s holding dwarfs these figures, reinforcing its position as a dominant force in the corporate crypto space.
The company’s stock has also significantly outperformed other Bitcoin-exposed equities. While Strategy’s shares soared 131%, Tesla’s stock rose 42.7%, Riot Platforms gained 26.3%, and MARA Holdings saw its shares fall by 21.9% over the same one-year period. This divergence underscores the strength of Strategy’s hybrid model and investor confidence in its long-term vision.
Riding the Bitcoin Wave with Political Tailwinds
Bitcoin’s rising value is a key catalyst behind Strategy’s momentum, and recent political developments have added further fuel to the rally. The Trump administration’s announcement of a strategic Bitcoin reserve marked a historic moment in the mainstream recognition of crypto as a non-sovereign store of value. This move suggests growing governmental acceptance and may encourage further institutional adoption.
In addition to executive actions, the legislative landscape is evolving rapidly. The passage of the GENIUS Act on July 17, 2025, established a solid legal framework for stablecoins, opening new avenues for financial innovation. Meanwhile, proposed legislation such as the CLARITY Act and the Anti-CBDC Surveillance State Act could create a more favorable regulatory environment for crypto enthusiasts and blockchain-focused companies. These political and regulatory developments are seen as long-term positives for firms like Strategy, even as the inherent volatility of Bitcoin remains a risk factor.
Funding Expansion with Bold Capital Moves
Strategy’s growth is being fueled by an aggressive capital-raising strategy that supports its Bitcoin acquisition and software innovation goals. Since October 30, 2024, the company has executed what it calls the 21/21 plan, a financing roadmap aimed at raising $84 billion—half through equity and half through fixed income securities.
So far, Strategy has successfully issued $20.9 billion in equity and $6.4 billion in fixed income. A portion of the fixed income includes $2 billion in convertible notes, as well as preferred offerings like Strike, an 8% convertible preferred with an effective yield of around 9%, and Strife, a 10% fixed coupon perpetual preferred. These instruments have provided the company with flexible capital to continue building its Bitcoin reserve and developing its enterprise software offerings.
In July, Strategy announced a significant new equity raise with the initial public offering of 28,011,111 shares of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC Stock). Priced at $90 per share, the offering is expected to generate net proceeds of approximately $2.474 billion, further strengthening Strategy’s war chest.
AI-Driven Innovation with Mosaic and Strategy One
While Bitcoin is a major focus, Strategy is equally committed to building a next-generation analytics platform powered by artificial intelligence. The company recently launched Mosaic, an AI-powered Universal Intelligence Layer, designed to support cloud-first, subscription-based analytics. This move marks a strategic shift toward recurring revenue models that capitalize on enterprise demand for smart, integrated data tools.
The company’s software subscription revenues grew by an impressive 62% year over year, reaching $37.1 million in the first quarter of 2025. These subscription revenues now make up 33% of total revenues, highlighting the growing importance of its software business. Subscription billings also saw a healthy 38% YoY growth, climbing to $24.5 million.
Mosaic enables customers to automate data modeling and generate AI-ready insights from over 200 data sources, while seamlessly integrating with tools like Power BI, Tableau, and Excel. Complementing this is Strategy One, the company’s flagship analytics engine that supports large-scale deployments across multiple industries, including retail, banking, healthcare, manufacturing, insurance, telecommunications, and the public sector.
Strategic Partnerships Driving Growth
A key component of Strategy’s success in enterprise software has been its ability to form high-impact partnerships with major cloud and technology providers. The company works closely with Amazon Web Services, Microsoft, Google, and STACKIT to deliver scalable, secure, and AI-enabled analytics solutions to its clients. These collaborations have expanded the reach of Strategy’s offerings and positioned the company as a trusted leader in enterprise intelligence.
Valuation Concerns Loom Despite Strong Momentum
Despite all the positive momentum, valuation remains a potential concern. Strategy currently trades at a Price/Book ratio of 3.0X, which is notably higher than MARA Holdings at 1.63X and Riot Platforms at 1.78X. This premium valuation has earned the company a Value Score of F, suggesting that the stock may be overvalued relative to peers.
Analysts are cautious in their outlook. The Zacks Consensus Estimate for the company’s Q2 2025 earnings remains unchanged at a loss of $0.12 per share, an improvement from a loss of $0.76 per share in the same quarter last year. However, the full-year estimate for 2025 remains a loss of $15.73 per share, compared to a loss of $6.72 in 2024.
Strategy’s bold dual strategy—dominating the Bitcoin landscape while accelerating its AI-driven enterprise software business—continues to impress investors. However, the combination of high volatility in crypto markets, uncertain macroeconomic conditions, and a rich valuation profile means that the stock comes with risks.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
