Is Strategy Inc overvalued?

In our latest published analysis dated 2026-05-20, MSTR looks meaningfully overvalued. The price recorded at analysis is USD 167 versus a composite fair-value midpoint of USD 6.94 (range USD 4.63–USD 9.81), implying roughly 95.8% downside to the midpoint at that date.

What is MSTR's fair value?

Our latest published report, analyzed 2026-05-20, gives MSTR a composite fair-value range of USD 4.63–USD 9.81, with a midpoint of USD 6.94. The range is triangulated across multiple valuation models and weighted by reliability for Strategy Inc's archetype; it is a dated research output, not a live price.

Should I buy MSTR now?

Our latest published rating for MSTR, analyzed 2026-05-20, is Sell with a confidence score of 13/100. Strategy Inc looks meaningfully overvalued at the analysis-date price of USD 167 versus a fair-value midpoint of USD 6.94. This is research for educational purposes, not personalized investment advice.

What are the biggest risks for MSTR?

The top risks our latest published report dated 2026-05-20 flags for Strategy Inc are: Debt Coverage Failure; NAV Premium Collapse; Regulatory Crackdown.

What is MSTR's rating?

Our latest published rating for MSTR, analyzed 2026-05-20, is Sell, with a confidence score of 13/100 and a moat score of 3/10. It reflects the composite fair-value range (USD 4.63–USD 9.81) versus the price recorded at analysis (USD 167).

What archetype is MSTR?

In the latest published report analyzed 2026-05-20, Strategy Inc is classified as a pre-profit stock. Archetype determines how every downstream parameter — discount rate, terminal growth, deceleration curve, terminal multiple, scenario probability weights, scorecard weights, and which valuation models are prioritized — is calibrated for MSTR.

MSTR bear case & kill scenarios | Stock Market Agent AI

Latest published researchAnalyzed 2026-05-20; report age: stale; sources: unverified. Age and source freshness are disclosed but do not remove the latest published report from discovery or indexing. Prices and valuation figures are the analysis-date snapshot, not a live quote.

Direct answer

Strategy Inc (MSTR) operates two entirely distinct business models: a mature, slow-growing enterprise software company and a highly leveraged Bitcoin holding company. The software business generates stable, albeit stagnant, revenues of ~$480M annually, which management uses alongside aggressive debt and equity issuance to continually acquire Bitcoin. The company's valuation is entirely detached from standard software fundamentals and functions instead as a leveraged tracking stock for Bitcoin. The core investment debate centers on whether the premium the market assigns to its BTC holdings over net asset value (NAV) is sustainable. Fair value range: low $4.63, high $9.81, with mid-point at $6.94.

FAQ

MSTR — frequently asked questions

In our latest published analysis dated 2026-05-20, MSTR looks meaningfully overvalued. The price recorded at analysis is USD 167 versus a composite fair-value midpoint of USD 6.94 (range USD 4.63–USD 9.81), implying roughly 95.8% downside to the midpoint at that date.

Metric	Current	Trigger threshold
Year-over-year decline in digital assets held per outstanding share.	Monitor	Deterioration versus the report thesis
Annual cash interest expense exceeding software segment free cash flow.	Monitor	Deterioration versus the report thesis
Stock persistently trading at a discount to the NAV of its Bitcoin treasury.	Monitor

Line item	2022-12-31	2023-12-31	2024-12-31	2025-12-31	Trend
Revenue	$499.3M	$496.3M-0.6%	$463.5M-6.6%	$477.2M+3.0%	-1.5%
Gross profit	$396.3M	$386.3M	$334.0M	$327.8M	-6.1%
Operating income	$10.5M	$804.0K	$-63.1M	$-40.9M	NaN%
Net income	$-1.47B	$429.1M	$-1.17B	$-3.85B	—
EPS (diluted)	$-12.98	$2.64	$-6.06	$-15.23	—
EBITDA	$-1.26B	$-61.0M	$-1.85B	$-5.44B	—
R&D	$127.4M	$120.5M	$118.5M	$93.9M	-9.7%
SG&A	$258.3M	$265.0M	$278.6M	$274.9M	+2.1%

MSTR — frequently asked questions

MSTR Strategy Inc fair value $5–$10

§1 Executive summary

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§2 Bear case

Debt Coverage Failure

NAV Premium Collapse

Regulatory Crackdown

§3 Financial history

Income statement — last six periods

Quality scores

Numbers analysis

Read the full analysis — 11 more sections.