Stock of MicroStrategy (MSTR) trading 32% below 52-week high, holding bitcoins, overvalued.

From Nasdaq

June 23, 2025 12:27:00 PM:

MicroStrategy, trading as “Strategy,” closed at $369.70, 32% below its 52-week high of $543. Shares have appreciated 27.6% YTD, outperforming MARA, RIOT, and TSLA, which hold bitcoins in their balance sheets. Strategy holds 592,100 bitcoins, benefiting from a strategic bitcoin reserve and increasing subscription revenues.

MSTR stock is trading above the 200-day moving average, indicating a bullish trend. Strategy benefits from a growing bitcoin holding and increasing subscription revenues. However, challenges like macroeconomic conditions and tariffs impact bitcoin trading volatility. The stock is currently overvalued with a Zacks Rank of 3 (Hold).

As of June 15, 2025, MicroStrategy holds 592,100 bitcoins, acquired 10,100 bitcoins in early June for $1.05 billion. The company benefits from increasing bitcoin yield, with a target of 15% raised to 25% and a dollar gain target of $15 billion. Subscription revenues surged 62% YoY to $37.1 million in Q1 2025.

For Q2 2025, the Zacks Consensus Estimate for MSTR’s loss is 12 cents per share, steady over the past 30 days. The full-year 2025 estimate is a loss of $15.73 per share, steady over the past week. Strategy is trading at 3.0X Price/Book, indicating a premium valuation compared to MARA and RIOT.

The stock is currently considered a Hold due to overvaluation and macroeconomic challenges affecting bitcoin trading. With a Zacks Rank of 3, investors are advised to wait for a better entry point. Strategy’s growing bitcoin holdings and subscription revenues are key strengths, offset by concerns about stretched valuation and market conditions.

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