MicroStrategy Rebrands as Strategy Inc., Posts 2.48% QoQ Decline

Strategy Inc. (formerly MicroStrategy) recently experienced a 2.48% price decline, following a name change and legal controversies. However, the company's Q2 2025 earnings report showed a significant net income turnaround and robust revenue, which may positively influence future forecasts. The revised guidance projects strong financials, and the share price remains below the analyst consensus price target of $569.83, indicating potential for upward price movement.

Strategy Inc. (formerly MicroStrategy), the technology company known for its Bitcoin holdings, reported its Q2 2025 earnings on July 2, 2025, showcasing a significant turnaround in net income and robust revenue growth. Despite a 2.48% price decline following a name change and legal controversies, the company's financial performance has shown resilience and may positively influence future forecasts.

The Q2 2025 earnings report highlighted several key points:

1. Revenue Growth: Strategy Inc. reported revenue of $114.5 million, exceeding analyst estimates of $113.1 million by 2.7% year-on-year growth and 1.2% beat. This growth was primarily driven by a significant rise in the price of Bitcoin, which benefited from broader institutional adoption and government support [1].

2. Net Income Turnaround: The company reported GAAP EPS of $32.51, significantly beating analyst estimates of $6.76. Adjusted Operating Income was -$1.31 million, up from -$16.24 million in the previous year, marking a 91.9% beat.

3. Operating Margin: The operating margin improved to 12.256%, up from -180% in the same quarter last year. This improvement was attributed to the adoption of new fair value accounting for digital assets and the ongoing issuance of Bitcoin-backed credit instruments [1].

4. Market Capitalization: Despite the price decline, Strategy Inc.'s market capitalization stood at $111.8 billion, reflecting the company's strong financial position.

Analysts raised several questions during the earnings call, which provided insights into the company's strategy and risks. CEO Michael Saylor argued that greater Bitcoin holdings accelerate adoption and benefit the ecosystem, while President Phong Le downplayed risks of market saturation. The company emphasized that shifting to perpetual preferred equity reduces refinancing risk and enhances the ability to withstand large drawdowns [1].

The Q2 2025 earnings report indicates that Strategy Inc. is well-positioned for future growth, despite the recent challenges. The share price remains below the analyst consensus price target of $569.83, indicating potential for upward price movement. However, investors should closely monitor the pace of transition to perpetual preferreds, market acceptance of new products, and the evolution of Bitcoin's price and volatility in the coming quarters [1].

References:

[1] https://finance.yahoo.com/news/top-5-analyst-questions-microstrategy-042635226.html