MicroStrategy, or “Strategy,” will report its second-quarter 2025 results on July 31. The Zacks Consensus Estimate for revenues is $112.15 million, up 0.64% year over year, with a loss forecast of 12 cents per share, unchanged from the past 30 days. The company holds 607,770 Bitcoins as of July 20.

Strategy is set to benefit from the growing Bitcoin holding, with 6,220 Bitcoins acquired in July for $739.8 million. The Trump administration’s strategic Bitcoin reserve announcement and Bitcoin’s increasing acceptance contribute to Strategy’s success. The company targets a 25% Bitcoin yield and $15 billion in Bitcoin dollar gains for the full year.

MicroStrategy has seen a 39.4% return on shares YTD, outperforming the Zacks Computer & Technology sector and the Computer Software industry. While outperforming MARA Digital and Tesla, it lags behind Riot Platform. The company’s stretched valuation is reflected in its current Value Score of F.

Despite the company’s stretched valuation and Bitcoin’s volatility, MicroStrategy continues to expand its AI capabilities with the launch of Mosaic, an AI-powered Universal Intelligence Layer, aligning with a cloud-first, subscription-based approach. The company aims to raise $42 billion through equity and fixed income securities by 2027.

In conclusion, MicroStrategy’s risky bet due to Bitcoin’s volatility and stretched valuation prompts caution. With a Zacks Rank #3 (Hold), investors are advised to wait for a better entry point to accumulate the stock. The company’s continued expansion and AI capabilities provide a positive outlook for the future.

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