Strategy (MSTR), the largest corporate holder of Bitcoin, has recently reported its third-quarter financial results, significantly exceeding Wall Street expectations across all key metrics. The company, formerly recognized as MicroStrategy, delivered an impressive earnings per share (EPS) of $8.42, surpassing the analysts’ consensus estimate of $7.90. Revenue for the quarter amounted to $128.7 million, outpacing expectations of $116.35 million and reflecting an 11% increase compared to the same period last year.
Management indicated that the robust performance was primarily driven by substantial gains in the company’s Bitcoin holdings. Currently, Strategy holds approximately 640,808 BTC, valued at an estimated $70.9 billion based on prevailing market prices. The firm’s average cost per Bitcoin is recorded at $74,032.
In addition to its impressive revenue figures, the company announced a 26% Bitcoin yield and a remarkable $12.9 billion gain from its Bitcoin investments year-to-date by the end of the third quarter. This performance positions the firm slightly below its full-year targets of 30% yield and a $20 billion gain. Strategy has raised a total of $20 billion in capital markets this year and intends to utilize these funds to enhance its Bitcoin acquisitions.
Looking ahead, management has reiterated its ambitious full-year 2025 guidance, forecasting an operating income of $34 billion, net income of $24 billion, and earnings reaching $80 per share. However, these projections hinge on the assumption that Bitcoin will conclude the year valued at $150,000 per token, whereas the cryptocurrency is currently trading at approximately $107,500.
In terms of the stock’s performance, MSTR holds a consensus Strong Buy rating from 14 Wall Street analysts. This rating comprises 13 Buy recommendations and one Sell over the past three months. Analysts have set an average price target of $532.84 for the stock, suggesting a potential upside of 107.02% from its current value. It remains to be seen how the company’s latest financial results will influence these ratings moving forward.
