Strategy Stock is Trading at a P/S of 94.02X: Should You Buy?

Strategy MSTR has positioned itself as a distinctive player in the digital asset ecosystem, combining a large Bitcoin treasury strategy with an established enterprise analytics software business. However, the stock trades at a rich valuation, reflected in its Value Score of F. In terms of the 12-month price/sales (P/S), MSTR is currently trading at 94.02X, higher than the Zacks Financial- Miscellaneous Services industry and the Zacks Finance sector’s 2.62X and 8.94X, respectively.

Strategy’s premium valuation is justified by its differentiated Bitcoin treasury strategy. The company holds a substantial Bitcoin reserve and continues to expand it through aggressive capital-raising initiatives. As of mid-March 2026, it holds approximately 738,731 bitcoins. Over time, Strategy has consistently increased its Bitcoin per share, highlighting its ability to increase shareholders’ exposure to the digital asset.

This premium valuation is more evident compared with key crypto and Bitcoin-focused peers such as Marathon Digital MARA, Riot Platforms RIOT, and Coinbase Global COIN. Currently, Marathon Digital trades at 4.02X, while Riot Platforms and Coinbase Global trade at 8.29X and 7.15X, respectively.

The revenue models of these peers also differ significantly. MARA and RIOT primarily generate revenues through Bitcoin mining, while Coinbase earns transaction fees from its cryptocurrency exchange platform. In contrast, Strategy focuses on accumulating Bitcoin as a long-term treasury asset.

MSTR’s Valuation Snapshot P/S (F12M)

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Given this lofty valuation, investors must evaluate whether Strategy’s growth initiatives and capital strategy can sustain further upside. Let us dig deep to find out.

MSTR Builds Momentum With Digital Credit Expansion

MSTR is strengthening its position in the emerging digital asset finance ecosystem through the expansion of its Digital Credit platform, a key pillar of its long-term capital markets strategy. During 2025, the company launched multiple digital credit instruments, including STRK, STRF, STRD, STRC and STRE, designed to provide investors with fixed-income-like exposure backed by Strategy’s Bitcoin reserves. These securities allow the company to attract a broader range of investors while linking the capital raised to its core Bitcoin treasury strategy.

The company raised substantial capital through these instruments as part of its broader capital markets strategy. In 2025, the company generated about $25.3 billion, including proceeds from preferred stock offerings that supported Bitcoin purchases and the expansion of its digital credit ecosystem.

An essential component of this ecosystem is STRC (Stretch), Strategy’s flagship treasury digital credit instrument. STRC has scaled to approximately $3.4 billion, offering a dividend structure designed to maintain price stability while delivering income to investors. In March 2026, Strive, Inc. allocated $50 million, representing over one-third of its corporate treasury, to STRC.

To strengthen the reliability of these instruments, Strategy established a $2.25 billion U.S. dollar reserve as of Feb. 1, 2026, providing roughly 2.5 years of dividend and interest coverage. The company also secured an S&P credit rating, which may help expand institutional participation in its capital markets offerings.

MSTR Software Business Adds to Growth Prospects

Strategy continues to benefit from its established enterprise software segment. The company operates a long-standing enterprise analytics software business with around 1,500 employees and more than 3,000 customers globally. This broad customer base underscores the continued relevance of its software operations alongside its digital asset initiatives.

In the fourth quarter, total revenues reached $123.0 million, up 1.9% year over year, reflecting stable demand for Strategy’s enterprise analytics solutions. Growth in recurring offerings, particularly subscription-based services, continued to support the segment’s revenue stability and long-term growth prospects.

Strategy is further enhancing its software platform by integrating AI-driven analytics capabilities as part of its “Intelligence Everywhere” vision. By combining its scalable enterprise analytics platform with its financial innovation around Bitcoin, the company aims to strengthen its position in both enterprise software and digital asset markets.

MSTR’s Earnings Estimates Show Positive Trend

Positive revisions in earnings estimates suggest growing analyst confidence in MSTR’s outlook.

For second-quarter 2026, the Zacks Consensus Estimate for MSTR’s earnings is pegged at $65.09 per share, up sharply from $14.86 per share over the past 60 days. The estimate also suggests 99.66% growth compared with the earnings reported in the year-ago quarter.

The consensus mark for 2026 earnings is currently pegged at $107.99 per share, up 109.3% over the past 60 days and indicating a sharp turnaround from the loss of $15.23 per share reported in 2025.

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MSTR Stock Outperforms Industry, Sector & S&P 500

Strategy’s shares have risen 8.6% in the past month, significantly outperforming the broader sector, industry and the S&P 500 Composite, which fell 6.6%, 7.6% and 2.9%, respectively. The outperformance can be attributed to MSTR’s continued accumulation of Bitcoin as a core treasury asset and its efforts to expand Bitcoin-backed financial products through its growing digital credit ecosystem.

MSTR's One Month Performance

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Why Investors Should Buy MSTR Stock

Although MSTR trades at a lofty multiple, its differentiated Bitcoin accumulation strategy, expanding digital credit platform and stable software revenues support strong long-term prospects. Rising earnings estimates and recent stock outperformance reinforce confidence in its growth trajectory. These factors make MSTR stock an attractive buy for investors looking for long-term digital asset growth.

MSTR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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Strategy Inc (MSTR): Free Stock Analysis Report

Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report

Riot Platforms, Inc. (RIOT): Free Stock Analysis Report

Coinbase Global, Inc. (COIN): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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