Strategy Reports Earnings: What the Bitcoin Bet Looks Like Now
Strategy Reports Earnings: What the Bitcoin Bet Looks Like Now
Vandita JadejaFri, July 31, 2026 at 5:00 PM UTC
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Sodel Vladyslav / Shutterstock.comQuick Read -
MSTR's $8.22B Q2 loss is non-cash bitcoin markdown noise; our $337.65 price target sees 245% upside if BTC recovers.
COIN generates 10x MSTR's quarterly revenue at comparable market caps, and MARA's 1.30 price-to-book highlights MSTR's outsized bitcoin-stack premium.
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MicroStrategy (NASDAQ:MSTR) closed at $97.74 after posting a $8.22 billion Q2 net loss driven almost entirely by an $8.32 billion unrealized bitcoin markdown.
Our 24/7 Wall St. price target for MSTR is $337.65, implying 245.45% upside over the next 12 months. Confidence is moderate at 50%, reflecting the fact that MSTR is effectively a leveraged bitcoin proxy.
24/7 Wall St. Price Target Summary
Metric
Value
Current Price
$97.74
24/7 Wall St. Price Target
$337.65
Upside
245.45%
Recommendation
Confidence Level
50%
Bitcoin's Drawdown, Strategy's Drawdown
MSTR is down 75.26% over the past year and 35.68% year to date, trailing bitcoin's own 44.11% one-year drop and 26.06% YTD decline. The stock sits 27% below its 52-week high of $414.36.
Q2 revenue of $122.37 million grew 6.88% year over year but fell 1.70% short of the $124.48 million consensus. Reported EPS of -$24.45 missed the $3.07 consensus by 895.3%, but subscription services grew 54% to $62.86 million. Bitcoin holdings grew 11% to 846,000 BTC, and convertible debt fell 18% to $6.7 billion.
MSTR Earnings Explorer — 24/7 Wall St.Why Bulls See a Breakout Ahead
The bull case is straightforward: bitcoin recovers. Our bull scenario points to $447.36, a 357.7% total return. BTC is already up 7.9% over the last month to $64,697, and Strategy's $3.75 billion USD Reserve covers preferred obligations for more than 2.1 years.
The 54% jump in subscription revenue shows the software business compounds underneath bitcoin volatility. Analysts polled see 93% bullish sentiment with zero sell ratings.
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MSTR Analyst Ratings — 24/7 Wall St.What Could Go Wrong
Our bear case lands at $258.44, still above spot but sobering. Bitcoin's cost basis of $63.9 billion now exceeds carrying value of $49.7 billion, and Q2 preferred dividends consumed $400.7 million. Polymarket assigns a 36.5% probability to MSCI index delisting by year-end. Insider transactions have skewed net selling.
Bulls counter that the accounting loss is non-cash and convertible debt reduction of 18% in one quarter meaningfully de-risks the capital structure.
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MSTR Price Target — 24/7 Wall St.How Strategy Compares to Coinbase and Marathon
Coinbase (NASDAQ:COIN) is the closest large-cap crypto-linked equity, with a market cap of $36.4 billion, essentially matching MSTR's $34.1 billion. But COIN generates $1.22 billion in quarterly revenue against Strategy's $122.37 million.
On a revenue-to-market-cap basis, MSTR's valuation reflects its bitcoin stack far more than its software business. Our target looks aggressive on operating fundamentals but reasonable on a bitcoin-per-share basis.
MARA Holdings (NASDAQ:MARA) is the pure-play bitcoin miner comp, trading at a price-to-book of 1.30 with a $4.5 billion market cap. MARA also posted a nine-figure bitcoin markdown last quarter, confirming the pattern is sector-wide.
Strategy trades at a meaningful premium to MARA on price-to-BTC-held, which the market justifies by MSTR's superior capital markets access. Our $337.65 target looks reasonable rather than heroic.
MicroStrategy Price Prediction 2026-2030
The 24/7 Wall St. price target of $337.65 reflects a genuine buy at 50% confidence. Even the bear case at $258.44 sits well above today's price. The setup looks constructive if bitcoin holds $60,000 and eventually reclaims $80,000. The risk widens if BTC breaks below $55,000, because MSTR's beta of 3.55 will magnify that move.
MSTR Price Scenario — 24/7 Wall St.
Looking ahead, here is where our model projects MSTR could trade, assuming bitcoin resumes its long-term uptrend and Strategy continues accreting bitcoin per share.
Year
24/7 Wall St. Price Target
2026
$337.65
2027
$720
2028
$1,450
2029
$2,300
2030
$3,445.48
These projections assume Strategy continues executing its bitcoin accumulation playbook and BTC compounds toward six figures. Significant downside could result from a sustained bitcoin bear market or forced deleveraging of the convertible book.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and MicroStrategy didn't make the cut. Grab the names FREE today.
Contact editorial@247wallst.com for any questions or corrections.
Source: “AOL Money”
