Latest news with #MicroStrategyIncorporated
Forbes
3 days ago
- Business
- Forbes
Is MSTR Stock A Buy Or Sell At $370?
CHONGQING, CHINA - APRIL 26: In this photo illustration, the logo of MicroStrategy Incorporated is ... More displayed on a smartphone screen, with the company's branding visible in the background, on April 26, 2025, in Chongqing, China. (Photo illustration by) Strategy Inc. (NASDAQ: MSTR), a firm previously recognized for its business intelligence, mobile software, and cloud-based services, has evolved into a notable indicator for Bitcoin because of its considerable investments in the cryptocurrency. The company's stock has recorded approximately a 24% increase year-to-date, reflecting Bitcoin's wider upward trend. This increase in Bitcoin's value has been affected by factors including the Trump administration's supportive stance on cryptocurrency. Aside from the recent gains, MSTR stock has shown impressive long-term growth, rising nearly 500% since the beginning of 2024. This remarkable performance can be mainly ascribed to the following factors: We will explore the specifics of these factors. While MSTR stock has performed remarkably, if you seek a smoother investment experience than an individual stock, consider the High Quality portfolio, which has surpassed the S&P, achieving over 91% returns since its inception. Separately, see – Nvidia Stock's 1 Big Risk Strategy's sales have decreased from $496 million in 2023 to $459 million currently. This pattern seems to be a continuation of a wider decline in its core software business, which has been ongoing for some time. This can largely be attributed to the company's redirection of its main strategy from its business intelligence software to becoming a corporate holder of Bitcoin. Even before the intense focus on Bitcoin, Strategy's software business was facing slow or declining growth amid strong competition from other industry players, including Sisense, Domo, and Tibco, among others. Regarding margins, Strategy's net income margins have shown extreme variability, plunging from 86.5% in 2023 to an astonishing -1161% at present. This dramatic fluctuation is chiefly due to the accounting treatment of Bitcoin in the financial statements. The company recognizes non-cash digital asset impairment charges to reflect changes in the cryptocurrency's value, in compliance with Bitcoin accounting regulations. Strategy's price-to-sales (P/S) ratio has surged over 700%, skyrocketing from 21x in 2023 to 171x currently. This escalation demonstrates that the company's traditional software sales have become largely inconsequential to its valuation. Instead, investors mainly determine Strategy's value based on its significant Bitcoin holdings. This transition is attributable to several crucial factors: As of April 28, 2025, Strategy owned 553,555 Bitcoin at an average price of $68,459 per coin, amounting to $37.90 billion. With Bitcoin presently trading around $106,000, this signifies a solid 55% gain on their investment. The company has recently increased its Bitcoin holdings to 580,250. Currently trading at approximately $370, Strategy's stock has a price-to-sales (P/S) ratio of 171x, which is substantially higher than its three-year average of roughly 48x. However, this elevated P/S ratio is mostly irrelevant since MSTR's valuation is fundamentally driven by its Bitcoin holdings rather than its traditional software revenue. Therefore, if you believe Bitcoin will continue its strong performance, MSTR could represent an appealing investment opportunity. The stock has already seen a correction of over 30% from its 52-week high of around $540. Several factors indicate potential long-term growth for Bitcoin. Its limited supply naturally enhances its value, and a weakening U.S. dollar makes dollar-denominated assets like Bitcoin more attractive to international investors. Political support from the Trump administration suggests a more favorable regulatory landscape, and the possibility of establishing a U.S. crypto reserve further validates the asset. Increasing interest and investment from large financial institutions are also contributing to heightened demand. While MSTR provides an appealing avenue for gaining exposure to Bitcoin, it's important to recognize the substantial risks involved. MSTR has a history of significantly underperforming the broader markets during challenging macroeconomic periods. For instance, during the inflation shock of 2022, MSTR's value dropped by nearly 90%, which starkly contrasts with the S&P 500's peak-to-trough decline of 25.4%. Similarly, during the corrections caused by the COVID-19 pandemic, MSTR fell by 65%, compared to a 34% decline in the S&P 500. Given this historical volatility, investors contemplating MSTR should thoughtfully assess these risks, particularly in the current environment of macroeconomic uncertainty. Even with its 500% increase since early 2024, and factoring in the associated risks, MSTR might still attract long-term investors. However, those wary of the short-term volatility and high risks tied to crypto-related investments could explore alternative strategies. For example, the Trefis High Quality (HQ) Portfolio, a selection of 30 stocks, has consistently surpassed the S&P 500 over the past four years. This outperformance stems from HQ Portfolio stocks historically providing better returns with lower risk, offering a less volatile investment experience than the broader market, as evidenced in HQ Portfolio performance metrics.
Yahoo
5 days ago
- Business
- Yahoo
GameStop pulls the trigger, discloses $513 million Bitcoin investment
-- GameStop Corp (NYSE:GME) shares climbed over 2%, but pared back some gains premarket Wednesday, after the video game retailer disclosed a $513 million investment in bitcoin, a significant step in its strategy to diversify assets and strengthen its balance sheet. The company announced the acquisition of approximately 4,710 bitcoins in a regulatory filing, though it did not detail the timing of the purchases. This marks GameStop's first direct foray into cryptocurrency holdings since it signaled its intent to invest in digital assets earlier this year. The move echoes a growing trend among corporations looking to incorporate alternative asset classes amid persistent macroeconomic uncertainty. The decision follows Bitcoin's recent surge, with the world's largest cryptocurrency trading between $107,000 and $112,000 over the past week, hitting a record high at $111,953.6. As digital assets gain broader acceptance, companies such as GameStop are exploring strategic exposure in efforts to hedge against inflation and position for long-term returns. The purchase closely mirrors the approach of MicroStrategy Incorporated (NASDAQ:MSTR), a former software firm that has evolved into a bitcoin-heavy investment vehicle. GameStop appears to be following a similar path as it attempts to reinvent its corporate identity beyond its traditional retail footprint. The investment in bitcoin comes amid broader efforts by GameStop to recalibrate its operations after years of volatility. The company has emphasized digital growth, including initiatives to enhance its e-commerce platform and capitalize on consumer trends shifting away from physical game sales. While the company has not disclosed the precise period during which the bitcoin purchases occurred, the filing aligns with guidance offered in March. At the time, GameStop indicated its intention to explore digital asset exposure as part of a renewed strategic alignment. As traditional and digital asset markets continue to intersect, GameStop's pivot highlights the increasing willingness of public companies to embrace non-conventional avenues for growth. The stock is now up 1.5% premarket, as investors weigh the risks and rewards of GameStop's evolving business. Related articles GameStop pulls the trigger, discloses $513 million Bitcoin investment Tesla and xAI merger possible, predicts Musk biographer Isaacson Skechers downgraded as window for another bidder to emerge has closed Sign in to access your portfolio
Business Wire
21-05-2025
- Business
- Business Wire
Law Offices of Frank R. Cruz Encourages MicroStrategy Incorporated (MSTR) Investors to Inquire About Securities Fraud Class Action
LOS ANGELES--(BUSINESS WIRE)-- The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased MicroStrategy Incorporated d/b/a Strategy ('Strategy' or the 'Company') (NASDAQ: MSTR) securities between , inclusive (the 'Class Period'). Strategy investors have until July 15, 2025 to file a lead plaintiff motion. Law Offices of Frank R. Cruz Encourages MicroStrategy Incorporated (MSTR) Investors To Inquire About Securities Fraud Class Action Share IF YOU SUFFERED A LOSS ON YOUR MICROSTRATEGY INCORPORATED INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT. You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at info@ by telephone at (310) 914-5007, or visit our website at What Happened? On April 7, 2025, Strategy disclosed that, following its adoption of Accounting Standards Update No. 2023-08 ('ASU 2023-08'), which requires publicly traded companies to measure their crypto assets at fair value in their financial statements, it recognized a $5.91 billion unrealized loss on its digital assets for the first quarter 2025. The Company warned that it 'may not be able to regain profitability in future periods, particularly if [it] incur[s] significant unrealized losses related to [its] digital assets.' On this news, Strategy's stock price fell $25.47, or 8.7%, to close at $268.14 per share on April 7, 2025, thereby injuring investors. Then, on May 1, 2025, Strategy released its first quarter 2025 financial results, confirming that it had recorded an unrealized fair value loss on digital assets of approximately $5.9 billion due to applying a fair value accounting methodology to Strategy's bitcoin assets following bitcoin's depreciation in value during the first quarter of 2025. What Is The Lawsuit About? The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the anticipated profitability of the Company's bitcoin-focused investment strategy and treasury operations was overstated; (2) the various risks associated with bitcoin's volatility and the magnitude of losses Strategy could recognize on the value of its digital assets following its adoption of ASU 2023-08 were understated; and (3) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. Contact Us To Participate or Learn More: If you purchased Strategy securities, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at: Law Offices of Frank R. Cruz 2121 Avenue of the Stars, Suite 800 Telephone: 310-914-5007 Email: info@ Visit our website at: This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Malaysian Reserve
19-05-2025
- Business
- Malaysian Reserve
MSTR Shareholder Alert: Robbins LLP Informs Investors of the MicroStrategy Incorporated d/b/a Strategy Class Action Lawsuit
SAN DIEGO, May 19, 2025 /PRNewswire/ — Robbins LLP informs stockholders that a class action was filed on behalf of investors who purchased or otherwise acquired MicroStrategy Incorporated d/b/a Strategy (NASDAQ: MSTR) securities between April 30, 2024 and April 4, 2025. Strategy, together with its subsidiaries, provides enterprise analytics software and services purportedly powered by artificial intelligence ('AI'). For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003. The Allegations: Robbins LLP is Investigating Allegations that MicroStrategy Incorporated (MSTR) Misled Investors Regarding the Profitability of its Bitcoin-Focused Investment Strategy According to the complaint, during the class period, defendants failed to disclose that: (i) the anticipated profitability of the Company's bitcoin-focused investment strategy and treasury operations was overstated; (ii) the various risks associated with bitcoin's volatility and the magnitude of losses Strategy could recognize on the value of its digital assets following its adoption of ASU 2023-08 were understated; and (iii) as a result, Defendants' public statements were materially false and misleading at all relevant times. The complaint alleges that on April 7, 2025, Strategy disclosed in an SEC filing that, following its adoption of ASU 2023-08, it recognized a $5.91 billion unrealized loss on its digital assets for the first quarter of 2025, which was expected to result in a net loss for the quarter. As a result, Strategy warned investors that '[w]e may not be able to regain profitability in future periods, particularly if we incur significant unrealized losses related to our digital assets.' On this news, Strategy's Class A common stock price fell $25.47 per share, or 8.67%, to close at $268.14 per share on April 7, 2025. Then, on May 1, 2025, Strategy issued a press release announcing its financial results for the first quarter of 2025. Therein, the Company confirmed that it had recorded an unrealized fair value loss on digital assets of approximately $5.9 billion during the quarter. On a subsequent earnings call to discuss these results, Company management explained that this loss stemmed from applying a fair value accounting methodology to Strategy's bitcoin assets following bitcoin's steep depreciation in value in the first quarter of 2025. What Now: You may be eligible to participate in the class action against MicroStrategy Incorporated. Shareholders who want to serve as lead plaintiff for the class are required to file their papers with the court by July 15, 2025. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here. All representation is on a contingency fee basis. Shareholders pay no fees or expenses. About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against MicroStrategy Incorporated settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today. Attorney Advertising. Past results do not guarantee a similar outcome.
Yahoo
30-04-2025
- Business
- Yahoo
Jim Cramer On MicroStrategy (MSTR)
We recently published a list of . In this article, we are going to take a look at where MicroStrategy Incorporated (NASDAQ:MSTR) stands against other stocks that Jim Cramer discussed recently. On Friday, Jim Cramer, host of Mad Money, revisited the recent turbulence in artificial intelligence stocks, three months after the emergence of DeepSeek, a Chinese AI firm that initially rattled markets. He noted that despite the broad pullback in the sector, many of the fears triggered by DeepSeek's debut have not materialized, which has led to a reconsideration of the panic that followed. 'Three months ago, January 23rd is a day that will live in artificial intelligence infamy. That's when we learned that a Chinese firm called DeepSeek had figured out a way to train high quality generative AI models using far less hardware. They claim their hardware costs were around $6 million versus 80 to $100 million for their enormous American competitors.' READ ALSO Jim Cramer's Game Plan for This Week: 16 Stocks in Focus and Jim Cramer Put These 16 Stocks Under a Microscope The announcement sent shockwaves through the market. Cramer recalled how NVIDIA saw its stock fall sharply over just two trading sessions. The market reaction spread quickly beyond and hit other companies tied to data center infrastructure, which eventually pulled down the broader Nasdaq. However, Cramer noted that the company then revealed plans to build $500 billion worth of AI infrastructure in the United States over the next four years. Cramer noted that initially, it seemed to signal a renewed sense of stability. But soon after, the administration imposed a ban on selling AI chips to China, which forced the GPU kingpin to write down $5.5 billion tied to that entire initiative. Even so, Cramer emphasized that the company's core business remained strong. 'We understand that they're basically sold out for the year, even as they can only sell their best stuff in the United States and the 18 friendly countries.' Cramer attributed the export restrictions to a policy from former President Biden, one that President Trump has not reversed. Despite the geopolitical constraints, Cramer stressed that demand for the company's technology is still overwhelming. He argued that the stock never should have experienced such a steep drop in the first place. He added: 'Even with the trade war, the AI infrastructure theme seems totally back on track. In fact, it never left the track to begin with.' Our Methodology For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 25. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey's database of over 1,000 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 44 In response to a caller's question about MicroStrategy Incorporated (NASDAQ:MSTR), Cramer said: 'Oh… No, no. Look, we like Bitcoin. We actually buy Bitcoin. That's what we do. We want Bitcoin. We buy Bitcoin.' MicroStrategy (NASDAQ:MSTR) provides AI-driven analytics software and related services that help businesses access and use data more effectively. The company also works on Bitcoin development. Greenlight Capital stated the following regarding MicroStrategy Incorporated (NASDAQ:MSTR) in its Q4 2024 investor letter: 'There is an open debate as to whether Bitcoin will at some point enter the mainstream as an official currency. In fact, there is a bill before Congress for the U.S. to establish a 'Strategic Bitcoin Reserve' and buy one million Bitcoins over five years. The bill's purpose appears to be the use of public funds to ramp up the price of Bitcoin, thereby enhancing the wealth of existing Bitcoin holders. This seems a dubious use of taxpayer funds, but the new administration has a lot of Bitcoin-owning supporters, so it might happen. More likely, cooler heads will decide that the government should not borrow another trillion dollars in the bond market to speculate in Bitcoin and that there is, in fact, nothing strategic about doing so. Overall, MSTR ranks 5th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of MSTR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MSTR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
