Strategy (MSTR) Achieves 196% Gains in Crypto Investments Over Five Years, Yet Stock Plummets Over 50%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Crypto Investment Returns: Strategy has achieved a remarkable 196% return on its cryptocurrency investments over the past five years, outperforming Bitcoin's 169% growth, indicating initial success in its investment strategy within the crypto market.
- Poor Stock Performance: Despite its strong historical performance, Strategy's stock has plummeted over 50% in the past year, reflecting market concerns about its future growth, particularly as Bitcoin's price has remained flat.
- Financing Model Risks: The company funds its Bitcoin purchases through issuing new shares and taking on debt, a strategy that works well during Bitcoin price surges but leads to shareholder dilution and increased debt burdens when prices stabilize.
- Cautious Future Outlook: Analysts maintain a cautious outlook for the Bitcoin market in 2026, suggesting that if Bitcoin continues to underperform, Strategy's stock may face further sell-off pressures, advising investors to consider direct Bitcoin purchases for better market exposure.
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: 170.910
Low
229.00
Averages
453.17
High
705.00
Current: 170.910
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.
