Strategy (MSTR), the largest corporate holder of Bitcoin (BTC), has reported third-quarter financial results that beat Wall Street forecasts across the board.
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The company, formerly known as MicroStrategy, posted earnings per share (EPS) of $8.42, which topped Wall Street estimates of $7.90. Revenue in Q3 came in at $128.7 million, which was above consensus expectations of $116.35 million. Sales were up 11% from a year earlier.
Management attributed the strong print mostly to gains in the company’s holdings of Bitcoin. The company now holds about 640,808 BTC valued at $70.9 billion based on the current price of the digital asset. Strategy’s average cost per Bitcoin is $74,032.
Strategy’s income statement. Source: Main Street Data
Bitcoin Yield
The company said that it generated a 26% Bitcoin yield and a $12.9 billion Bitcoin dollar gain year-to-date at the end of the third quarter. That compares to full-year targets of 30% and $20 billion, respectively. Strategy has raised $20 billion year-to-date through capital markets and plans to use those funds to purchase more Bitcoin.
Management reaffirmed their full-year 2025 guidance for operating income of $34 billion, net income of $24 billion, and earnings of $80 per share. However, that guidance assumes that Bitcoin ends this year at $150,000 per digital token. BTC is currently trading at $107,500.
Is MSTR Stock a Buy?
The stock of Strategy has a consensus Strong Buy rating among 14 Wall Street analysts. That rating is based on 13 Buy and one Sell recommendations issued in the last three months. The average MSTR price target of $532.84 implies 107.02% upside from current levels. These ratings could change after the company’s financial results.
