Dear MicroStrategy Stock Fans, Mark Your Calendars for July 30

Bitcoin (BTCUSD) has lost its spark lately, and that weakness has cast a long shadow over companies that loaded up on the cryptocurrency. No company feels that pressure more than Strategy (MSTR), which built its entire identity around buying Bitcoin. The company currently holds 843,775 bitcoins, making it the world's largest corporate Bitcoin treasury.

However, MSTR stock has endured eleven consecutive months of losses. Shares crashed from a 2-year high of $543, set on Nov. 21, 2024, to the upper $90s, wiping out 82% of their value. Meanwhile, the company's financial commitments have not changed much.

STRC has emerged as Strategy's biggest pain point. The company’s preferred stock, designed to trade near $100, has fallen to a record low. Annual dividend obligations have quadrupled to $1.2 billion, while cash coverage has dwindled from more than seven years to about 14 months.

In fact, the company is now facing a securities fraud investigation. Some analysts have urged management to stop accumulating Bitcoin and focus on rebuilding cash reserves. The company also reportedly sold 32 bitcoins for $2.5 million between May 26 and May 31, marking a rare departure from Strategy's long-standing buy-only approach to Bitcoin.

The backdrop makes Strategy's upcoming earnings report a pivotal event. The company is scheduled to announce its Q2 FY2026 results after the markets close on Thursday, July 30. The quarterly numbers will share the spotlight with updates on the company's Bitcoin position, liquidity, financing strategy, and plans for future growth.

About Strategy Stock

Formerly known as MicroStrategy, Tysons Corner, Virginia-based Strategy is the world's largest Bitcoin Treasury Company, pioneering corporate Bitcoin adoption by making it its primary reserve asset. 

Alongside its Bitcoin-focused capital strategy, the company, which carries a market cap of $34.57 billion, develops artificial intelligence (AI)-powered enterprise analytics software and Bitcoin-related products, including Strategy One and Strategy Mosaic.

MSTR stock has taken investors on a rough ride, falling 75.83% over the past 52 weeks. The selling has not let up in 2026 either, with the stock already down 35.77% year-to-date (YTD). The slide comes as little surprise, as Strategy's fortunes rise and fall with the value of its massive Bitcoin holdings.

Moreover, MSTR stock is currently trading at 67.32 times sales. The valuation stands head and shoulders above industry averages, highlighting the hefty premium investors continue to place on the business.

A Closer Look at Strategy’s Q1 Earnings

Strategy delivered a solid start to FY2026 in its first quarter. The market responded positively on May 5, with the stock gaining 1.7% intraday. Total revenue rose 11.9% year-over-year (YOY) to $124.3 million. Gross profit reached $83.4 million, while the gross margin stood at 67.1%. 

The bottom line painted a completely different picture. A fair value decline in Bitcoin during the quarter pushed the operating loss to $14.8 billion, more than double the $5.9 billion loss recorded in Q1 FY2025. Meanwhile, net loss came in at $12.5 billion, while loss per share widened 132% from the previous year’s quarter to $38.25.

Management stressed that the damage largely reflected noncash mark-to-market accounting tied to quarter-end Bitcoin prices rather than weakness in the underlying business.

Coming to the balance sheet, Strategy owned 818,334 bitcoins as of May 3, representing a 22% increase since the start of the year. The holdings carried a cost basis of $61.81 billion and a market value of $64.14 billion, with an average purchase price of about $75,537 per coin. The company also reported a 9.4% BTC Yield for the year so far. 

Strategy increasingly leaned on STRC to finance its aggressive Bitcoin buying spree. The company's Digital Credit instrument grew to $8.5 billion outstanding in just nine months. Average daily trading volume reached $375 million, while volatility stayed low at only 3%. 

Looking forward, analysts expect Strategy to deliver Q2 FY2026 EPS of $52.04, a 59.6% YOY growth. They also forecast full-year FY2026 EPS of $57.47, marking a 477.4% jump from the previous year. Expectations cool considerably beyond that point as analysts estimate FY2027 bottom line to decline 56.4% YOY to $25.04.

What Do Analysts Expect for Strategy Stock?

Wall Street continues to back Strategy despite the recent turbulence. MSTR stock currently holds an overall “Strong Buy” rating. Among 19 analysts, 16 have assigned a “Strong Buy” rating, one recommends “Moderate Buy,” and two suggest “Hold,” reflecting continued confidence in the company's long-term growth prospects.

To that end, the average price target stands at $295.38, implying potential upside of 202.9%. Meanwhile, the Street-High target sits at $570, representing a gain of 484.6% from current levels.