SpaceX Acquires xAI, Targeting $1.25 Trillion IPO Valuation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Acquisition Announcement: SpaceX has announced the acquisition of startup xAI, with plans for a massive IPO that could value the combined entity at $1.25 trillion, significantly enhancing SpaceX's competitive edge in the AI sector.
- Debt Financing Boost: Oracle's credit default swaps have plummeted by 17%, but investor confidence has surged following the company's announcement of a $50 billion debt and equity financing plan, which is expected to improve its financial health and support future growth.
- Bitcoin Decline: Bitcoin has fallen approximately 12% over the past week, dipping below $80,000 for the first time since April 2025, primarily due to forced liquidations, which may undermine investor confidence in cryptocurrencies.
- U.S. Stock Market Rally: Despite ongoing declines in gold and silver prices, major U.S. indexes rose on Monday, with the S&P 500 gaining 0.54% and the Dow Jones Industrial Average climbing 1.05%, reflecting optimistic sentiment regarding economic recovery.
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Analyst Views on MSTR
Wall Street analysts forecast MSTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSTR is 453.17 USD with a low forecast of 229.00 USD and a high forecast of 705.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 149.710
Low
229.00
Averages
453.17
High
705.00
Current: 149.710
Low
229.00
Averages
453.17
High
705.00
About MSTR
Strategy Inc., formerly MicroStrategy Incorporated, is a bitcoin treasury and business intelligence company. The Company provides cloud-native, artificial intelligence (AI)-powered enterprise analytics software to thousands of global customers. The Company’s Strategy ONE platform provides access to AI-powered workflows, unlimited data sources, cloud-native technologies, and performance to speed up time from data to action. Strategy One delivers visualization, reporting, and embedded analytics capabilities across retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. Its Strategy Mosaic is a universal intelligence layer that provides enterprises with consistent definitions and governance across data sources, regardless of where that data resides or which tools access it. The Strategy Mosaic offers data clarity and connection by eliminating trade-offs between flexibility, control, and speed.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Strategy Inc. Earnings Preview for Q4 2025
- Earnings Expectations: Strategy Inc. is projected to report a loss of $18.64 per share for Q4 2025, a significant increase from a loss of $3.20 per share in the same quarter last year, highlighting the company's vulnerability amid cryptocurrency market fluctuations.
- Revenue Forecast: The expected quarterly revenue of $118.92 million represents a decline from $120.70 million year-over-year, indicating mounting pressure on the company’s market competitiveness and profitability.
- Stock Rating Changes: Despite maintaining a 'Buy' recommendation from 12 analysts, the price target has been drastically reduced from $705 to $480.53, reflecting diminished market confidence in the company's future performance.
- Bitcoin Impact: With 712,647 BTC valued at approximately $54.53 billion, the company's earnings may face substantial hits due to a 23% decline in Bitcoin prices, exacerbating downward pressure on the stock price.
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MicroStrategy Doubles Down on Bitcoin Investment
- Bitcoin Holdings Status: MicroStrategy currently holds 712,647 BTC at an average purchase price of $76,037, with Bitcoin trading around $78,000, resulting in unrealized gains narrowing to less than 3%.
- Dividend Increase Strategy: The company raised the dividend on its Series A Perpetual Stretch Preferred Stock (STRC) by 25 basis points to 11.25%, aiming to attract new capital for future Bitcoin purchases, with this yield significantly exceeding typical corporate bonds, reflecting the company's capital hunger.
- Funding Source Analysis: STRC sales have funded over 27,000 BTC since its November launch, becoming the primary engine for the firm's capital raises, highlighting its importance in the Bitcoin investment strategy.
- Market Response and Risks: Despite facing cash flow pressures from high dividend costs, MicroStrategy plans to continue increasing its Bitcoin holdings, indicating that its strategy in response to market volatility is to invest more, demonstrating confidence in Bitcoin's long-term value.
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