Strategy Inc (MSTR) shares are considered overvalued with a Value Score of F. Trading at 1.93X price/book, MSTR is at a premium compared to MARA Holdings (MARA) and Riot Platforms (RIOT).

MSTR stock is trading below the 50-day and 200-day moving averages, indicating a bearish trend. Shares have lagged behind the Financial-Miscellaneous Services industry and the Finance sector.

As the largest bitcoin treasury company, Strategy holds 638,460 bitcoins. Performance comparison shows underperformance against Riot Platforms but outperformance against MARA Holdings and CleanSpark.

Strategy expects a bitcoin yield of 30% and $20 billion in gains if bitcoin hits $150,000 by year-end. Operating income for 2025 is estimated at $34 billion, with net income of $24 billion and earnings of $80 per share.

Capital raising through preferred equity offerings like STRK, STRF, STRD, and STRC has been a catalyst for Strategy. The company has raised $10.7 billion in equities and $7.6 billion in fixed income securities year to date.

Earnings estimates for MSTR are steady, with a Zacks Consensus Estimate of a loss of 11 cents per share for the third quarter of 2025. For 2025, the loss estimate is $15.73 per share.

Despite growing bitcoin holdings, Strategy faces challenges like stretched valuation and macroeconomic uncertainty. Investors should avoid the stock, currently rated as a Zacks Rank #4 (Sell).

Expert analysis suggests avoiding MSTR due to its challenges, despite growing bitcoin holdings. The stock is considered risky for investors, with a Zacks Rank of #4 (Sell).

Read more at Nasdaq: Is Strategy Stock’s 1.93X PB Still Worth it? Buy, Sell, or Hold?