Is MSTR's Bitcoin-Heavy Treasury Model Reshaping Long-Term Value Creation?

• Strategy Inc. reported record third-quarter 2025 financial results, with revenue rising to US$128.69 million and net income reaching US$2.79 billion, attributed mainly to unrealized gains on its expanding Bitcoin portfolio.
• The company’s growing Bitcoin holdings and progress toward S&P 500 inclusion reflect rising institutional interest in its Bitcoin-focused treasury model.
• We’ll explore how Strategy’s move to increase Bitcoin holdings without shareholder dilution strengthens its long-term investment narrative.

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What Is Strategy's Investment Narrative?

The core belief behind holding shares of Strategy Inc. is a conviction in the company’s unique Bitcoin-focused treasury model, which positions it as both a software firm and a significant corporate Bitcoin holder. The latest quarter brought record net income of US$2.79 billion, mainly due to unrealized gains from its extensive Bitcoin portfolio; it also reaffirmed robust full-year guidance, easing fears of a sudden reversal. The most important short-term catalyst now is the potential S&P 500 inclusion and institutional buying that often follows, with recent results improving the odds. Previously, the biggest risks were further shareholder dilution and Bitcoin price volatility; this quarter’s Bitcoin acquisition, funded without new common stock, addresses dilution concerns, though reliance on non-cash earnings and regulatory ambiguity around Bitcoin remain. In sum, the news materially shifts both risks and key drivers, especially for those focused on institutional flows and capital structure.

But investor optimism contrasts with ongoing regulatory and accounting uncertainty around Bitcoin that could impact valuations. Our expertly prepared valuation report on Strategy implies its share price may be lower than expected.

Exploring Other Perspectives

Across the six Simply Wall St Community fair value estimates, views spanned from US$495 to US$663, showcasing a wide divergence. Given this variety of outlooks, it’s clear opinions can differ sharply, especially in light of Strategy’s evolving risk profile and dependence on Bitcoin’s regulatory future. Dig deeper to weigh these alternative perspectives for a fuller picture.

Explore 6 other fair value estimates on Strategy - why the stock might be worth just $495.31!

Build Your Own Strategy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Strategy research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Strategy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Strategy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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