As Bitcoin Tops $110,000, Is It Time to Buy MicroStrategy Stock?
MicroStrategy (MSTR) is still one of the best-discussed cryptocurrency proxies on the Street.
After Bitcoin's (BTCUSD) price rocketed to a new record high near $110,000, scrutiny is again returning to Michael Saylor's tech firm. MSTR stock has fallen over 12% in the past five trading days, leaving investors scratching their heads. Although BTC prices have pullen back toward the $107,600 level, they are down a much more muted 0.4% over the past five days.
With MicroStrategy still the single biggest corporate holder of Bitcoin, investors are sure to question if this is a dip worth buying, considering that institutional inflows into spot Bitcoin exchange-traded funds are still hitting record levels.
About MicroStrategy
MicroStrategy (MSTR), based in Tysons Corner, Virginia, is a corporate intelligence and business analytics firm that has been inextricably linked with corporate exposure to Bitcoin under the leadership of Executive Chairman Michael Saylor. It has a larger amount of Bitcoin than any other publicly traded company. MSTR has a market capitalization of about $101.7 billion.
In the past 52 weeks, MicroStrategy shares have ranged widely between $102.40 and $543, a reflection of its sensitivity to Bitcoin. Shares are up 26% in the year to date and are up nearly 60% from their 2025 low.
MSTR has a staggering 218x multiple on sales and no forward multiple on earnings because of repeated net losses. The extraordinary multiple reflects its unusual status as a proxy to Bitcoin instead of fundamentals based on software revenue. Its profitability metrics are also extremely negative, with a -251.7% profit margin and -37.6% return on equity, highlighting that it is a bet on digital asset appreciation.
The firm does not issue a dividend and is not expected to do so. Its capital strategy instead focuses on acquiring Bitcoin through debt and the issue of shares.
MicroStrategy Reports Massive Q1 Net Loss
In its latest earnings report, MicroStrategy published Q1 2025 revenues of $111.1 million and a net loss of $4.2 billion. The massive loss was largely attributed to a non-cash digital asset impairment charge related to Bitcoin accounting rules, not operational underperformance. Though revenue from its core analytic software is relatively flat, MicroStrategy's value proposition is nearly entirely based on Bitcoin's path. The company did not offer forward-looking EPS guidance but reaffirmed its policy of continuing to buy BTC using excess cash and financing tools.
One of the highlights was the news of a further $1 billion convertible note offering in Q1, a large portion of which has been invested in new Bitcoin purchases. This reinforces MicroStrategy's status as a leveraged bet on cryptocurrency upside.
What Do Analysts Expect for MicroStrategy Stock?
MSTR has limited analyst coverage considering its unconventional valuation metrics and speculative nature. MicroStrategy has a 'Strong Buy' consensus rating based on Barchart's internal data. The company is currently covered by 13 analysts, most of whom remain optimistic about its long-term upside tied to Bitcoin's institutional adoption. The mean target analyst value is $534, which represents a potential gain of just under 44% from its current price. That upside reflects both a positive outlook on Bitcoin and the potential further rerating of MSTR.
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