Strategy Q2 revenue rises 6.9% but slightly misses estimates amid bitcoin price decline
MSTR•Bitcoin decline drove losses
- BITCOIN PRICE DECLINE - Co said operating and net losses were driven by an $8.32 billion unrealized loss on digital assets after a significant bitcoin price drop
- BITCOIN ACCUMULATION - Co increased bitcoin holdings by 11% in Q2 despite market volatility, per CEO Phong Le
- CAPITAL MANAGEMENT - Co repurchased $28.9 million of STRC preferred shares at a 13% discount and reduced convertible debt by 18%
Outlook and analyst coverage
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Company intends to maintain STRC dividend rate at 12.00% until trading near $100/share
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Company expects preferred equity distributions to be treated as non-taxable return of capital for 10+ years
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Company plans regular STRC repurchases while shares trade below $100, scaling by price and liquidity
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The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
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The average consensus recommendation for the software peer group is "buy"
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Wall Street's median 12-month price target for Strategy Inc is $240.00, about 157.2% above its July 29 closing price of $93.33
