Strategy Balance Sheet Health
Financial Health criteria checks 5/6
Strategy has a total shareholder equity of $45.3B and total debt of $6.7B, which brings its debt-to-equity ratio to 14.8%. Its total assets and total liabilities are $52.6B and $7.2B respectively.
Key information
14.80%
Debt to equity ratio
US$6.71b
Debt
| Interest coverage ratio | n/a |
| Cash | US$2.45b |
| Equity | US$45.33b |
| Total liabilities | US$7.24b |
| Total assets | US$52.56b |
Recent financial health updates
Recent updates
Bitcoin-Centric Credit Expansion Will Shape Volatile Yet Enduring Long-Term Outcomes
Catalysts About Strategy Strategy focuses on using Bitcoin as core treasury capital and issuing digital credit instruments such as Stretch to build a large, leveraged digital asset platform. What are the underlying business or industry changes driving this perspective?Strategy: This May Be The Start Of The Next Bitcoin Bull Market
Summary Strategy (MSTR) remains my preferred BTC exposure, currently at 10% NAV, with a disciplined rebalancing strategy through cycles. I believe the next BTC bull market has likely started, supported by technical channels and improved sentiment from institutional ownership. The upcoming Senate vote on the CLARITY Act is a critical near-term catalyst for BTC and MSTR, potentially boosting mainstream adoption. Should the CLARITY Act advance, I expect a surge in BTC sentiment; failure would likely cause moderate near-term compression. Read the full article on Seeking AlphaStrategy Inc Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next
Investors in Strategy Inc ( NASDAQ:MSTR ) had a good week, as its shares rose 5.4% to close at US$98.37 following the...Strategy (MSTR) Stock Could Be 21.3% Below Fair Value After $100 Million Bitcoin Buy
Strategy (MSTR) is back in focus after buying 1,587 Bitcoin for about US$100 million, using common stock sales that also lifted cash reserves and renewed debate around dilution and long term value. See our latest analysis for Strategy. Despite the latest Bitcoin purchase, Strategy’s 30 day share price return is down 26.3% and the year to date share price return is down 21.9%. However, the 3 year total shareholder return is more than triple, suggesting long term momentum has been strong even...Strategy: Saylor Buys The Dip, I Buy The Break-Out
Summary Strategy is breaking out after a 40% drop from its ATH. Bitcoin's bullish trend, confirmed by technical analysis, supports the investment thesis for MSTR, which has significant Bitcoin holdings. MSTR's chart shows a strong breakout, with the potential to reach $700 if Bitcoin hits $120k. Despite high volatility and risks like geopolitical tensions and competition, MSTR presents a compelling opportunity for those bullish on Bitcoin. Read the full article on Seeking AlphaStrategy (MicroStrategy): The Ultimate Bet On Bitcoin's Future
Summary MicroStrategy has transformed into a leveraged Bitcoin proxy, offering investors amplified exposure to Bitcoin's price movements through its massive Bitcoin holdings and strategic financial engineering. The company's strategy benefits from rising institutional acceptance of Bitcoin, creating a positive feedback loop that could further drive up Bitcoin's price and validate MicroStrategy's model. Despite its potential for outsized gains, MicroStrategy's heavy reliance on Bitcoin's appreciation and its leveraged position make it an incredibly risky investment. MicroStrategy's unique business model and financial execution make it a compelling play for those who believe in Bitcoin as the ultimate scarce asset. Read the full article on Seeking AlphaStrategy (MicroStrategy) Shouldn't Have Paid $100,000 For Bitcoin
Summary MicroStrategy borrowed money to buy Bitcoin at $100,000 or higher. The loans had little in the way of interest; however, they have conversion features that could dilute equity. On Tuesday, MSTR announced it was issuing preferred stock with high interest rates. So the "low interest rate convertible bond" argument for owning MSTR is weakening. In this article, I explore why MicroStrategy is too leveraged and exposed to Bitcoin to be worth buying now. Read the full article on Seeking AlphaStrategy: Preferred Offering Has Potential Problem
Summary Strategy has pivoted from software analytics to Bitcoin investment, significantly increasing its holdings through equity and debt raises. The company announced a plan to sell up to $21 billion of preferred stock, which raises concerns about its ability to cover dividend payments. MSTR's valuation appears high, with its market cap exceeding the value of its Bitcoin holdings and software business. Read the full article on Seeking AlphaStrategy (MicroStrategy): Collapses With Bitcoin Drop, Still Grossly Overvalued
Summary Strategy (MicroStrategy) is an inefficient and risky way to gain exposure to Bitcoin; Bitcoin futures are more efficient for leveraged exposure. MSTR's past favorable bond issuances are unlikely to be replicated at the scale needed to justify its market cap premium. Avoid MSTR and buy Bitcoin directly if bullish; MSTR's structure is reminiscent of risky, leveraged financial products from the 2008 crisis. Read the full article on Seeking AlphaStrategy: It Just Doesn't Make Sense
Summary Strategy's value lies primarily in its Bitcoin portfolio, not its traditional software business. Despite BTC's rise, MSTR's premium to its BTC portfolio value remains perplexing, with the company using share sales and convertible debt to buy more BTC. The concept of "BTC yield" overcomplicates a simple process of capitalizing on MSTR's premium to acquire more BTC, without clear long-term earnings potential. Without meaningful earnings, it's unclear why investors would choose MSTR over BTC directly, reinforcing my Hold rating despite BTC's appreciation. Read the full article on Seeking AlphaStrategy (Formerly MicroStrategy) Q4 Earnings: Selling Volatility... And 'Merch'
Summary MicroStrategy's re-branding and merchandise store signal the company's encouragement of dangerous emotional attachment to the stock. Strategy's declining software revenue and high volatility make the common stock a decent trading vehicle but a potentially dubious investment. Despite a healthy balance sheet, MSTR's volatility and premium to Bitcoin holdings make it a risky bet compared to Bitcoin itself. Preferred shares and convertibles may be better options for exposure, but MSTR common shares are not advisable due to dilution and premium risks. Read the full article on Seeking AlphaFinancial Position Analysis
Short Term Liabilities: MSTR's short term assets ($2.7B) exceed its short term liabilities ($495.1M).
Long Term Liabilities: MSTR's short term assets ($2.7B) do not cover its long term liabilities ($6.7B).
Debt to Equity History and Analysis
Debt Level: MSTR's net debt to equity ratio (9.4%) is considered satisfactory.
Reducing Debt: MSTR's debt to equity ratio has reduced from 2778.3% to 14.8% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss-making in the past, we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: MSTR has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: MSTR has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 45.2% each year
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/09/14 04:09 |
| End of Day Share Price | 2026/09/11 00:00 |
| Earnings | 2026/06/30 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
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Learn about the who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Strategy Inc is covered by 25 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Brian Kinstlinger | Alliance Global Partners |
| Ramsey El-Assal | Barclays |
| Gautam Chhugani | Bernstein |