Opinions
Kevin Simpson
MicroStrategy
MSTR-Q
SELL
Feb 28, 2025
Stock price when the opinion was issued
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MSTR is a $3.8B company that provides analytics software services, and has mostly maintained its revenue levels over the years. It has been decently profitable over the years, and exhibited decent share price appreciation from post-dot com to ~2020. During 2020, the CEO implemented a 'bitcoin strategy' whereby the company would direct some of its free cash flows and debt issuance towards the purchase of bitcoin. The company's purchases were profitable for some time, and represented a large percentage of its market cap, causing the share price to largely reflect bitcoin's price. The company continues to purchase bitcoin with its free cash flow, however, this has materially slowed down.
It has 140K bitcoins, worth roughly ~$3.7B. Given this, its market cap is mostly its holdings in bitcoin, and on the optimistic side, if the price of bitcoin increases and its business becomes profitable again (therefore allowing it to purchase more bitcoin) its share price can increase from here. On the other hand, if bitcoin declines or stagnates, it has a high debt load that will require interest payments and its share price will fall. Much depends on the price of bitcoin for MSTR, and we believe if an investor is bullish on the price of bitcoin, we feel MSTR has upside potential, however, if one is less optimistic then it may not show much capital appreciation over the coming years.
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Microstrategy (nasdaq: mstr) is a worldwide leader in enterprise analytics and mobility software. a pioneer in the bi and analytics space, microstrategy delivers innovative software that empowers people to make better decisions and transform the way they do business. we provide our enterprise customers with world-class software and expert services so they can deploy unique intelligence applications. Social media mentions are up 1000% in the past 24h.
We are the world's first and largest Bitcoin Treasury Company, and the largest independent, publicly traded business intelligence company. We provide cloud-native, AI-powered enterprise analytics software to thousands of global customers, and leverage 35+ years of software expertise to explore innovation in Bitcoin applications. We believe the combination of our operating structure, Bitcoin strategy, and focus on technology innovation provides a unique opportunity for value creation. We rebranded from MicroStrategy to Strategy in February 2025. Social media mentions are up 500% in the past 24h.
He got stopped out today. Is tied to Bitcoin, which has been sliding. If Bitcoin falls to $70,000, he will rebuy this.