The cryptocurrency market is experiencing a notable resurgence, with Bitcoin (BTCUSD) recently climbing to significant highs above $97,000. This renewed appetite for risk comes on the heels of easing inflation signals in the U.S., stable employment figures, and increased investments in crypto ETFs. In this context, Bitcoin treasury and analytics pioneer MicroStrategy, now rebranded as Strategy (MSTR), is increasing its investment in Bitcoin, demonstrating a strong bullish outlook. MSTR’s CEO, Michael Saylor, has projected that Bitcoin could reach $1 million by 2029.
Investors are now faced with the question of whether to buy, sell, or hold MSTR stock. Based in Tysons Corner, Virginia, Strategy has positioned itself as the world’s first and largest Bitcoin treasury company. Initially founded in 1989 to focus on enterprise analytics software, the firm pivoted to Bitcoin as its primary treasury reserve asset, building extensive holdings in the cryptocurrency.
This strategic decision has provided investors with varied exposure to Bitcoin through different securities, all while advancing its analytics capabilities. However, the journey has not been without its challenges; MSTR’s stock has seen considerable declines, shedding 52.67% over the past year and 61.9% over the last six months. In contrast, the S&P 500 Index increased by 16.89% and 10.8% in the same periods, respectively. MSTR hit a 52-week high of $457.22 in July 2025 but has since fallen approximately 62% from that peak. Nevertheless, the stock has gained traction lately, climbing 10.4% in the past five days and recovering 16% from its 52-week low of $149.75 established at the start of 2026.
Currently, MSTR’s stock trades at a valuation lower than its industry peers, featuring a price-to-earnings ratio of 6.25x compared to the industry average of 32.73x. The company recently reported third-quarter results surpassing market expectations. For fiscal 2025, total revenue rose by 10.9% year-over-year, reaching $128.69 million, driven by a remarkable 62.9% increase in product licenses and subscription services revenue.
Additionally, Strategy managed to bounce back from a loss last year, reporting a $3.89 billion income from operations in Q3 2025, largely fueled by an unrealized gain on its digital assets. The bottom line showed a significant improvement, shifting from a loss of $1.72 per share to an earnings per share (EPS) of $8.42. The firm has established a U.S. dollar reserve of $1.44 billion, set to cover dividends and outstanding debts, funded by proceeds from a sale of Class A common stock.
However, analysts are cautious about the company’s outlook, projecting that its loss per share may widen in the fourth quarter and for fiscal 2025. Despite this, estimations for fiscal 2026 suggest a 32.4% reduction in losses.
Wall Street analysts maintain a generally optimistic view on MSTR stock, although with differing price targets. An analyst from Citi reaffirmed a “Buy” rating while reducing the price target from $485 to $325, highlighting updated expectations regarding digital assets. Bernstein analysts also adjusted their price target from $600 to $450 but retained an “Outperform” rating, contending that concerns over the company’s financial health are exaggerated. Cantor Fitzgerald analysts gave a slightly more conservative price target of $229 while preserving an “Overweight” stance, while Monness, Crespi, Hardt upgraded their rating from “Sell” to “Neutral.”
Overall, MSTR is gaining traction as a prominent stock among analysts, with a consensus “Strong Buy” rating from 16 analysts, of whom 13 endorse it as a “Strong Buy.” The consensus price target stands at $473.79, suggesting an upside of 172.8% from current levels, with the highest price target sitting at $705, translating to a remarkable 305.9% upside.
Key factors influencing Strategy’s future will be the inherent volatility of Bitcoin. This risk may impact the stock negatively in the event of a protracted downtrend in the crypto market. However, the bullish sentiment from analysts presents potential upside for investors willing to enter the market in anticipation of significant gains.
