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Reasons to Hold MSTR Stock Despite a 50% Decline in 3 Months
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Key Takeaways
MSTR shares fell nearly 50% in 3M, pressured by Bitcoin volatility, mNAV compression and weak technicals.
Strategy holds about 671,268 BTC, making Bitcoin its primary reserve asset and a scale edge over peers.
MSTR raised about $6.7B via preferred securities and trades at a 0.91x P/B, well below its industry average.
Strategy (MSTR - Free Report) , the world’s largest corporate Bitcoin holder, has seen its shares tumble 49.7% over the past three months, sharply underperforming the Zacks Finance sector’s growth of 1.4% and the Zacks Financial- Miscellaneous Services industry’s decline of 12.9%.
The underperformance can be attributed to Bitcoin price volatility, as fair-value accounting ties earnings closely to Bitcoin movements. In addition, compression in the mNAV multiple has further pressured the stock even as Bitcoin exposure increased.
MSTR stock has also underperformed relative to competitors, including CleanSpark (CLSK - Free Report) , Riot Platforms (RIOT - Free Report) and MARA Holdings (MARA - Free Report) . Over the same period, CleanSpark, Riot Platforms and MARA Holdings fell 13.5%, 15% and 42.5%, respectively.
In terms of business offerings, CleanSpark is primarily a Bitcoin miner and data center developer, with performance driven by hash rate growth and energy efficiency. Strategy differs materially, combining a business intelligence software platform with a large-scale corporate Bitcoin treasury strategy. Riot Platforms operates a vertically integrated Bitcoin mining and digital infrastructure model, while MARA Holdings focuses on Bitcoin mining supported by digital asset computing infrastructure.
Despite the sharp share price decline, the focus now shifts to whether MSTR’s fundamentals provide sufficient support for a hold case. Let us take a closer look.
MSTR Three-Month Price Comparison
Image Source: Zacks Investment Research
MSTR’s Massive Bitcoin Holdings Give It a Structural Edge
Strategy has built an unmatched position as the world’s largest corporate holder of Bitcoin, creating a structural advantage that is difficult for competitors to replicate. As of mid-December 2025, the company held about 671,268 BTC, including a recent purchase of 10,645 BTC disclosed on Dec. 15. These holdings firmly establish Bitcoin as MSTR’s primary reserve asset rather than a supplemental allocation.
This early and aggressive strategy has been reinforced by disciplined capital raising. Year to date, MSTR raised $19.8 billion, systematically converting capital into Bitcoin and lifting digital asset holdings to roughly $71 billion at market value. Importantly, management has emphasized that all bitcoin will remain unencumbered, maintaining balance-sheet flexibility.
Due to its scale, MSTR can utilize Bitcoin-backed financing more efficiently than competitors, which strengthens the cycle of liquidity access and Bitcoin accumulation. The company's 30% BTC yield target for 2025 reflects a long-term approach to compounding value.
MSTR’s Preferred Securities Fuel Capital Flexibility
The company has developed an innovative digital credit and preferred securities platform that strengthens capital flexibility and funding stability. In 2025, Strategy launched four preferred securities — STRF, STRK, STRD and STRC — broadening its funding options. Notably, STRC (“Stretch”) became the largest U.S. IPO of 2025. Together, these offerings raised approximately $6.7 billion in preferred equity, reducing reliance on convertible debt while expanding access to income-oriented and retail investors.
MSTR’s preferred securities strategy is supported by its active at-the-market (ATM) programs, which provide steady and flexible access to capital instead of relying on large, one-time offerings. In the third quarter of 2025, the company raised about $217 million through the STRF ATM Program, $153 million via the STRK ATM Program and $48.5 million from the STRD ATM Program, with additional proceeds generated in October. This ATM-driven approach helps MSTR opportunistically raise preferred equity in response to market conditions, strengthening capital flexibility and supporting Bitcoin savings and balance-sheet stability.
MSTR Trades at an Attractive Valuation
MSTR shares are trading at a discount to the industry. Its trailing 12-month price-to-book value of 0.91X is significantly lower than the industry average of 3.18X.
Such a discounted P/B multiple indicates that the market is undervaluing MSTR relative to its asset base and long-term strategic position. For value-oriented investors, this could represent an attractive entry point.
MSTR’s Earnings Estimates Show Mixed Trend
While the above factors strengthen MSTR’s long-term positioning, they also create near-term headwinds, including mNAV compression, valuation volatility and higher fixed dividend and interest obligations.
The Zacks Consensus Estimate for MSTR’s 2025 earnings is pegged at $78.04 per share, unchanged over the past 30 days. The company reported a loss of $6.72 per share in 2024, underscoring a solid improvement in earnings momentum.
The consensus mark for the full-year 2026 earnings is pegged at $51.60 per share, remaining steady over the past 30 days. The estimate suggests a year-over-year decrease of 33.88%.
Image Source: Zacks Investment Research
MSTR stock is currently trading below the 50-day and 200-day moving averages, indicating a bearish trend.
MSTR Stock Trades Below 50-Day and 200-Day SMAs
Image Source: Zacks Investment Research
Conclusion: Best to Maintain a Hold Position
Strategy retains strong long-term appeal driven by its unmatched Bitcoin scale, flexible capital structure and discounted valuation. Massive BTC holdings, disciplined capital raises and innovative preferred securities support durability. However, elevated fixed dividend, mixed earnings visibility and weak technical momentum temper near-term optimism. Improving earnings momentum and balance-sheet flexibility provide downside support. Given the mix of strong long-term fundamentals and short-term uncertainty, it is prudent for investors to maintain a hold position for the time being.
Image: Bigstock
Reasons to Hold MSTR Stock Despite a 50% Decline in 3 Months
Key Takeaways
Strategy (MSTR - Free Report) , the world’s largest corporate Bitcoin holder, has seen its shares tumble 49.7% over the past three months, sharply underperforming the Zacks Finance sector’s growth of 1.4% and the Zacks Financial- Miscellaneous Services industry’s decline of 12.9%.
The underperformance can be attributed to Bitcoin price volatility, as fair-value accounting ties earnings closely to Bitcoin movements. In addition, compression in the mNAV multiple has further pressured the stock even as Bitcoin exposure increased.
MSTR stock has also underperformed relative to competitors, including CleanSpark (CLSK - Free Report) , Riot Platforms (RIOT - Free Report) and MARA Holdings (MARA - Free Report) . Over the same period, CleanSpark, Riot Platforms and MARA Holdings fell 13.5%, 15% and 42.5%, respectively.
In terms of business offerings, CleanSpark is primarily a Bitcoin miner and data center developer, with performance driven by hash rate growth and energy efficiency. Strategy differs materially, combining a business intelligence software platform with a large-scale corporate Bitcoin treasury strategy. Riot Platforms operates a vertically integrated Bitcoin mining and digital infrastructure model, while MARA Holdings focuses on Bitcoin mining supported by digital asset computing infrastructure.
Despite the sharp share price decline, the focus now shifts to whether MSTR’s fundamentals provide sufficient support for a hold case. Let us take a closer look.
MSTR Three-Month Price Comparison
Image Source: Zacks Investment Research
MSTR’s Massive Bitcoin Holdings Give It a Structural Edge
Strategy has built an unmatched position as the world’s largest corporate holder of Bitcoin, creating a structural advantage that is difficult for competitors to replicate. As of mid-December 2025, the company held about 671,268 BTC, including a recent purchase of 10,645 BTC disclosed on Dec. 15. These holdings firmly establish Bitcoin as MSTR’s primary reserve asset rather than a supplemental allocation.
This early and aggressive strategy has been reinforced by disciplined capital raising. Year to date, MSTR raised $19.8 billion, systematically converting capital into Bitcoin and lifting digital asset holdings to roughly $71 billion at market value. Importantly, management has emphasized that all bitcoin will remain unencumbered, maintaining balance-sheet flexibility.
Due to its scale, MSTR can utilize Bitcoin-backed financing more efficiently than competitors, which strengthens the cycle of liquidity access and Bitcoin accumulation. The company's 30% BTC yield target for 2025 reflects a long-term approach to compounding value.
MSTR’s Preferred Securities Fuel Capital Flexibility
The company has developed an innovative digital credit and preferred securities platform that strengthens capital flexibility and funding stability. In 2025, Strategy launched four preferred securities — STRF, STRK, STRD and STRC — broadening its funding options. Notably, STRC (“Stretch”) became the largest U.S. IPO of 2025. Together, these offerings raised approximately $6.7 billion in preferred equity, reducing reliance on convertible debt while expanding access to income-oriented and retail investors.
MSTR’s preferred securities strategy is supported by its active at-the-market (ATM) programs, which provide steady and flexible access to capital instead of relying on large, one-time offerings. In the third quarter of 2025, the company raised about $217 million through the STRF ATM Program, $153 million via the STRK ATM Program and $48.5 million from the STRD ATM Program, with additional proceeds generated in October. This ATM-driven approach helps MSTR opportunistically raise preferred equity in response to market conditions, strengthening capital flexibility and supporting Bitcoin savings and balance-sheet stability.
MSTR Trades at an Attractive Valuation
MSTR shares are trading at a discount to the industry. Its trailing 12-month price-to-book value of 0.91X is significantly lower than the industry average of 3.18X.
Such a discounted P/B multiple indicates that the market is undervaluing MSTR relative to its asset base and long-term strategic position. For value-oriented investors, this could represent an attractive entry point.
MSTR’s Earnings Estimates Show Mixed Trend
While the above factors strengthen MSTR’s long-term positioning, they also create near-term headwinds, including mNAV compression, valuation volatility and higher fixed dividend and interest obligations.
The Zacks Consensus Estimate for MSTR’s 2025 earnings is pegged at $78.04 per share, unchanged over the past 30 days. The company reported a loss of $6.72 per share in 2024, underscoring a solid improvement in earnings momentum.
The consensus mark for the full-year 2026 earnings is pegged at $51.60 per share, remaining steady over the past 30 days. The estimate suggests a year-over-year decrease of 33.88%.
Image Source: Zacks Investment Research
MSTR stock is currently trading below the 50-day and 200-day moving averages, indicating a bearish trend.
MSTR Stock Trades Below 50-Day and 200-Day SMAs
Image Source: Zacks Investment Research
Conclusion: Best to Maintain a Hold Position
Strategy retains strong long-term appeal driven by its unmatched Bitcoin scale, flexible capital structure and discounted valuation. Massive BTC holdings, disciplined capital raises and innovative preferred securities support durability. However, elevated fixed dividend, mixed earnings visibility and weak technical momentum temper near-term optimism. Improving earnings momentum and balance-sheet flexibility provide downside support. Given the mix of strong long-term fundamentals and short-term uncertainty, it is prudent for investors to maintain a hold position for the time being.
Strategy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.