Latest news with #RiotPlatform
Globe and Mail
29-07-2025
- Business
- Globe and Mail
Should You Buy, Sell, or Hold MSTR Stock Before Q2 Earnings?
MicroStrategy MSTR, doing business as 'Strategy,' is set to report its second-quarter 2025 results on July 31. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $112.15 million, indicating growth of 0.64% year over year. The consensus mark for loss is currently pegged at 12 cents per share, unchanged over the past 30 days. The company reported a loss of 76 cents per share in the year-ago quarter. MicroStrategy Incorporated Price and EPS Surprise Let's see how things are shaping up prior to this announcement. Factors to Note for MSTR's Q2 Earnings Strategy is the world's largest bitcoin treasury company, holding 607,770 Bitcoins as of July 20, 2025. In July, Strategy acquired 6,220 Bitcoins for $739.8 million. In early June, Strategy acquired 10,100 bitcoins for $1.05 billion. Strategy is expected to have benefited from the Trump administration's announcement of the establishment of a strategic bitcoin reserve. Bitcoin, the most popular cryptocurrency, has been soaring due to increasing acceptance as a non-sovereign asset, as well as higher institutional and corporate adoption. MSTR is expected to have benefited from increasing bitcoin yield, which was 13.7% year to date (as of April 28, 2025). This is expected to keep the company on track to reach the full-year target of 25% and the bitcoin dollar gain target of $15 billion. Bitcoin gains in dollar terms were $4.1 billion in the first quarter of 2025 and $5.8 billion as of April 28, 2025. Strategy is expected to have benefited from growing software subscription revenues that surged 62% year over year to $37.1 million and accounted for 33% of first-quarter 2025 total revenues. Subscription billings grew 38% year over year to $24.5 million. The trend is expected to have continued in the to-be-reported quarter. MSTR Shares Outperform Sector, Industry Strategy shares have returned 39.4% year to date (YTD), outperforming the Zacks Computer & Technology sector's return of 11.3% and the Zacks Computer Software industry's 19.4%. MSTR shares have outperformed MARA Digital MARA and Tesla TSLA YTD, but lag Riot Platform RIOT. While MARA Digital and Riot Platform shares returned 2.3% and 42.1%, respectively, Tesla dropped 19.4%. MSTR Stock's Performance Strategy stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment. In terms of Price/Book, MSTR is trading at 3.43X, higher than MARA Digital's 1.62X and Riot Platform's 1.76X. MSTR's Benefits Growing From Growing Bitcoin Holding The passing of the GENIUS Act on July 17 provides a legal background to stablecoins. Other pending regulations — The CLARITY Act and The Anti-CBDC Surveillance State Act — bode well for cryptocurrency enthusiasts. The improving favorable regulatory environment bodes well for Strategy, although Bitcoin's volatility is a headache. Strategy estimates to generate net proceeds of $2.474 billion from the initial public offering of 28,011,111 shares of Variable Rate Series A Perpetual Stretch Preferred Stock (the 'STRC Stock'), at a public offering price of $90 per share. Strategy has issued $20.9 billion in equities and $6.4 billion in fixed income securities as part of its 21/21 plan since Oct. 30, 2024. The company has $14.6 million remaining under fixed income securities and $0.1 million under equities as part of the existing plan. Strategy currently plans to raise $42 billion through equity issuance and $42 billion through fixed income securities by the end of 2027. Under the current plan, the company has $21.1 billion in equity and $35.6 billion in fixed income securities remaining to be issued. Strategy is expanding AI capabilities with the general availability of Mosaic, an AI-powered Universal Intelligence Layer. This launch aligns with the company's shift toward cloud-first, subscription-based services. The company benefits from continuing cloud demand with its flagship Strategy One that powers some of the largest analytics deployments in the world. Strategy One supports varied industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications and the public sector. Conclusion Bitcoin's inherent volatility, along with Strategy's stretched valuation, makes the MSTR stock a risky bet ahead of the second quarter of 2025. Strategy currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Higher. Faster. Sooner. Buy These Stocks Now A small number of stocks are primed for a breakout, and you have a chance to get in before they take off. At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We've combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month. You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days. Download the report free now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report MicroStrategy Incorporated (MSTR): Free Stock Analysis Report Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report Riot Platforms, Inc. (RIOT): Free Stock Analysis Report
Globe and Mail
25-07-2025
- Business
- Globe and Mail
MicroStrategy Rises 131% in a Year: Buy, Sell or Hold the MSTR Stock?
MicroStrategy MSTR, doing business as 'Strategy,' shares have appreciated 131% in the trailing 12 months, outperforming both the Zacks Computer - Software industry and Zacks Computer and Technology sector that have returned 22.2% and 22.8%, respectively. Strategy is the world's largest bitcoin treasury company, holding 607,770 Bitcoins as of July 20, 2025. In July, Strategy acquired 6,220 Bitcoins for $739.8 million. MARA Holdings MARA, Riot Platform RIOT and Tesla TSLA are other well-known companies that hold bitcoins in their respective balance sheets. As of March 31, MARA Holdings and Riot Platforms had 47,531 and 19,223 bitcoins, respectively, while Tesla had 11,509 bitcoins at the end of the second quarter of 2025. Strategy shares have outperformed Tesla and Riot Platform, shares of which have jumped 42.7% and 26.3% respectively, in the past year. MARA Holdings shares have dropped 21.9% over the same time frame. MSTR Stock's Performance MSTR stock is currently trading above the 200-day moving average, indicating a bullish trend. MSTR Stock Trades Above 50-Day and 200-Day SMAs MSTR Benefits From Growing Bitcoin Holding Strategy benefits from the Trump administration's announcement of the establishment of a strategic bitcoin reserve. Bitcoin, the most popular cryptocurrency, has been soaring due to increasing acceptance as a non-sovereign asset, as well as higher institutional and corporate adoption. The passing of the GENIUS Act on July 17 provides a legal background to stablecoins. Other pending regulations — The CLARITY Act and The Anti-CBDC Surveillance State Act — bode well for cryptocurrency enthusiasts. However, bitcoin's volatility is a headwind for MSTR. The company's disciplined approach to capital raising through preferred equity offerings — Strike (8% convertible preferred is trading with an effective yield of roughly 9%) and Strife (10% fixed coupon perpetual preferred) — is a key catalyst. As of April 28, 2025, MSTR raised $6.6 billion through equity offerings and $3.4 billion through fixed income ($2 billion from convertible notes, $0.7 billion each through Strike and Strife). Strategy estimates to generate net proceeds of $2.474 billion from the initial public offering of 28,011,111 shares of Variable Rate Series A Perpetual Stretch Preferred Stock (the 'STRC Stock'), at a public offering price of $90 per share. Strategy has issued $20.9 billion in equities and $6.4 billion in fixed income securities as part of its 21/21 plan since Oct. 30, 2024. The company has $14.6 million remaining under fixed income securities and $0.1 million under equities as part of the existing plan. Strategy currently plans to raise $42 billion through equity issuance and $42 billion through fixed income securities by the end of 2027. Under the current plan, the company has $21.1 billion in equity and $35.6 billion in fixed income securities remaining to be issued. Infusion of AI Features Aids MSTR's Prospects Strategy is expanding AI capabilities with the general availability of Mosaic, an AI-powered Universal Intelligence Layer. This launch aligns with the company's shift toward cloud-first, subscription-based services. Strategy is benefiting from growing software subscription revenues that surged 62% year over year to $37.1 million and accounted for 33% of first-quarter 2025 total revenues. Subscription billings grew 38% year over year to $24.5 million. Mosaic complements this growth by allowing customers to integrate data from over 200 sources, automate semantic modeling and deliver AI-ready insights across tools like Power BI, Tableau and Excel. The company benefits from continuing cloud demand with its flagship Strategy One that powers some of the largest analytics deployments in the world. Strategy One supports varied industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. Strategy is leveraging generative AI to automate and accelerate the deployment of AI-enabled applications across enterprises. Strategy's rich partner base that includes the likes of Amazon Web Services, Microsoft, STACKIT, and Google is a growth driver. Earnings Estimates Revision Trend Steady for MSTR For second-quarter 2025, the Zacks Consensus Estimate for MSTR's loss has been steady at 12 cents per share over the past 30 days. The company reported a loss of 76 cents in the year-ago quarter. For 2025, the Zacks Consensus Estimate for MSTR's loss has been steady at $15.73 per share over the past 30 days. The company reported a loss of $6.72 per share in 2024. Here's Why MSTR Stock is a Hold Now Strategy shares are overvalued, as suggested by the Value Score of F. In terms of Price/Book, Strategy is trading at 3.0X compared with Mara Holdings' 1.63X and Riot Platforms' 1.78X, suggesting a premium valuation. MSTR Vs. MARA Valuation MSTR Vs. RIOT Valuation Strategy benefits from its growing bitcoin holdings and increasing subscription revenues. However, challenging macroeconomic conditions and uncertainty about tariffs increase volatility in bitcoin trading. Stretched valuation is a concern. Strategy currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. #1 Semiconductor Stock to Buy (Not NVDA) The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow. One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report MicroStrategy Incorporated (MSTR): Free Stock Analysis Report Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report Riot Platforms, Inc. (RIOT): Free Stock Analysis Report
Globe and Mail
23-06-2025
- Business
- Globe and Mail
MicroStrategy Stock Trades 32% Below 52-Week High: Buy, Sell or Hold?
MicroStrategy MSTR, doing business as 'Strategy,' shares closed at $369.70 on Friday, 32% below the 52-week high of $543 it hit on Nov. 21, 2024. Strategy shares have appreciated 27.6% year to date (YTD), while the Zacks Computer - Software industry and Zacks Computer and Technology sector have returned 10.4% and 0.9%, respectively. Strategy is the world's largest bitcoin treasury company, holding 592,100 bitcoins as of June 15, 2025. In early June, Strategy acquired 10,100 bitcoins for $1.05 billion. MARA Holdings MARA, Riot Platform RIOT and Tesla TSLA are other well-known companies that hold bitcoins in their respective balance sheets. As of March 31, MARA Holdings and Riot Platforms had 47,531 and 19,223 bitcoins, respectively, while Tesla had 11,509 bitcoins at the end of the first quarter of 2025. Strategy shares have outperformed MARA Holdings, Riot Platform and Tesla, shares of which have dropped 14.6%, 6.4% and 20.3%, YTD. MSTR Stock's Performance MSTR stock is currently trading above the 200-day moving average, indicating a bullish trend. MSTR Stock Trades Above 200-Day SMA MSTR Benefits From Growing Bitcoin Holding Strategy benefits from the Trump administration's announcement of the establishment of a strategic bitcoin reserve. Bitcoin, the most popular cryptocurrency, has been soaring due to increasing acceptance as a non-sovereign asset, as well as higher institutional and corporate adoption. However, bitcoin's volatility is a headwind for MSTR. Bitcoin is now trading above $101K, much lower than the $111K it registered in May. MSTR benefits from increasing bitcoin yield, 13.7% year to date (as of April 28, 2025), keeping the company on track to reach full year target of 15%, which is now raised to 25% and bitcoin dollar gain target to $15 billion (up from initial target of $10 billion). Bitcoin gains in dollar terms were $4.1 billion in the first quarter of 2025 and $5.8 billion as of April 28, 2025. The company's disciplined approach to capital raising through preferred equity offerings — Strike (8% convertible preferred is trading with an effective yield of roughly 9%) and Strife (10% fixed coupon perpetual preferred) — is a key catalyst. As of April 28, 2025, MSTR raised $6.6 billion through equity offerings and $3.4 billion through fixed income ($2 billion from convertible notes, $0.7 billion each through Strike and Strife). Strategy has issued $20.9 billion in equities and $6.4 billion in fixed income securities as part of its 21/21 plan since Oct. 30, 2024. The company has $14.6 million remaining under fixed income securities and $0.1 million under equities as part of the existing plan. Strategy currently plans to raise $42 billion through equity issuance and $42 billion through fixed income securities by the end of 2027. Under the current plan, the company has $21.1 billion in equity and $35.6 billion in fixed income securities remaining to be issued. Growing Subscription Revenues Aid MSTR Prospects Strategy is benefiting from growing software subscription revenues that surged 62% year over year to $37.1 million and accounted for 33% of first-quarter 2025 total revenues. Subscription billings grew 38% year over year to $24.5 million. The company benefits from continuing cloud demand with its flagship Strategy One that powers some of the largest analytics deployments in the world. Strategy One supports varied industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. Strategy is leveraging generative AI to automate and accelerate the deployment of AI-enabled applications across enterprises. Strategy's rich partner base that includes the likes of Amazon Web Services, Microsoft, STACKIT, and Google is a growth driver. Earnings Estimates Revision Trend Steady for MSTR For second-quarter 2025, the Zacks Consensus Estimate for MSTR's loss has been steady at 12 cents per share over the past 30 days. The company reported a loss of 76 cents in the year-ago quarter. For 2025, the Zacks Consensus Estimate for MSTR's loss has been steady at $15.73 per share over the past week. The company reported a loss of $6.72 per share in 2024. Here's Why MSTR Stock is a Hold Now Strategy shares are overvalued, as suggested by the Value Score of F. In terms of Price/Book, Strategy is trading at 3.0X compared with MARA's 1.35X and Riot Platforms' 1.16X, suggesting a premium valuation. MSTR Vs. MARA Valuation MSTR Vs. RIOT Valuation Image Source: Zacks Investment Research Strategy benefits from its growing bitcoin holdings and increasing subscription revenues. However, challenging macroeconomic conditions and uncertainty about tariffs increase volatility in bitcoin trading. Stretched valuation is a concern. Strategy currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report MicroStrategy Incorporated (MSTR): Free Stock Analysis Report Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report Riot Platforms, Inc. (RIOT): Free Stock Analysis Report
