Strategy Inc. (NASDAQ:MSTR) shares are trading higher Friday after the company reported better-than-expected fourth quarter financial results on Thursday after the market closed.
Quarterly Results, Bitcoin Holdings And Capital Markets Update
Strategy posted adjusted earnings per share of $16.37, beating the consensus estimate of $10.96. In addition, the company reported revenue of $122.98 million, beating the consensus estimate of $118.47 million.
Total revenue for the quarter increased 1.9% year-over-year. Subscription services revenue rose 62.1% to $51.8 million, while product licenses and subscription services revenue increased 26.3% to $59.6 million. Product support revenue declined 16.9% to $48.5 million and other services revenue decreased 1.8% to $14.9 million.
Gross profit totaled $81.3 million in the fourth quarter, representing a gross margin of 66.1%, compared with $86.5 million and a 71.7% gross margin in the prior-year period.
Strategy reported an operating loss of $17.4 billion for the quarter, reflecting an unrealized loss on its digital assets under fair value accounting. Net loss for the quarter totaled $12.4 billion, or $42.93 per diluted share.
As of Feb. 1, the company held approximately 713,502 bitcoins at a total cost of $54.26 billion, or an average cost of $76,052 per bitcoin. Strategy said it achieved a full-year 2025 BTC yield of 22.8%.
The company also highlighted capital markets activity, noting it raised $25.3 billion during fiscal year 2025 and expanded its digital credit platform, including STRC, which scaled to an aggregate stated amount of $3.4 billion with a current dividend rate of 11.25%.
Technical Analysis of Strategy
Despite the positive market backdrop, there are no specific catalysts driving the stock’s performance today. The broader market’s upward momentum contrasts with the stock’s stagnation, indicating potential company-specific concerns or a lack of investor interest.
The stock is currently trading 21.9% below its 20-day simple moving average (SMA) and 45.8% below its 100-day SMA, highlighting a bearish trend in the short to medium term. Over the past 12 months, shares have decreased by 62.78%, positioning them closer to their 52-week lows than highs, which reflects ongoing challenges for the company.
The RSI is at 24.49, indicating that the stock is in oversold territory, while the MACD is below its signal line, suggesting bearish pressure on the stock. The combination of oversold RSI and bearish MACD indicates mixed momentum, which could signal a potential for a short-term bounce if conditions improve.
- Key Resistance: $155.00
- Key Support: $104.00
Investors should monitor these key levels closely, as a break below support could lead to further declines, while a move above resistance may indicate a reversal in trend. The current technical setup suggests that while the stock is under pressure, there may be opportunities for traders if momentum shifts positively.
Strategy Shares Surge Higher
MSTR Price Action: At the time of publication, Strategy shares are trading 18.36% higher at $126.63, according to data from Benzinga Pro.
This illustration was generated using artificial intelligence via Midjourney.
