Strategy (MSTR) reported second quarter 2026 earnings on July 30, highlighting revenue of US$122.37 million and a net loss of US$8.22 billion. The update also covered six-month results to June 30.
See our latest analysis for Strategy.
Strategy’s share price has declined 49.22% over the past 90 days and 39.64% year to date, while the 3 year total shareholder return of 143.56% shows how volatile sentiment has been as the company shifts its Bitcoin focused model.
If this kind of high volatility leaves you looking for different types of opportunities, it can help to scan a wider set of stocks using our screener for 21 cryptocurrency and blockchain stocks
After a 49% slide in 90 days and a multi billion dollar quarterly loss tied to Bitcoin, Strategy now sits at a very different point on the risk reward spectrum. Is the meaningful upside still ahead or already spent in the last three years?
Preferred Price-to-Book of 1.2x for Strategy: Is it justified?
On a simple yardstick, Strategy trades on a P/B of 1.2x, which is far below both peers and the wider US Software industry based on current data.
The P/B ratio compares the market value of the equity to the accounting value of net assets. For a company like Strategy that combines a Bitcoin treasury focus with software operations, this metric partly reflects how much of the market value investors currently attribute to assets on the balance sheet versus future potential.
According to the latest checks, Strategy screens as good value on this basis, with its 1.2x P/B ratio sitting well under a peer average of 8.2x and also below the broader US Software industry average of 3x. That is a wide gap and suggests the market is pricing Strategy at a substantial discount to both close comparables and the sector overall, even before factoring in its Bitcoin exposure and unprofitable status.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-book of 1.2x (UNDERVALUED).
However, Strategy still faces clear risks, including continued Bitcoin price pressure that affects the balance sheet and the possibility that software growth does not offset that drag.
Find out about the key risks to this Strategy narrative.
Next Steps
Given the mix of concern and optimism around Strategy right now, it makes sense to review the facts for yourself and move quickly while sentiment is shifting. To weigh both sides in one place, start with the 1 key reward and 1 important warning sign.
Looking for more investment ideas beyond Strategy?
If Strategy feels too volatile on its own, broaden your opportunity set now and let a few focused shortlists point you toward clearer risk and reward trade offs.
- Target steadier compounding potential by scanning companies that currently look mispriced on quality and value with the 53 high quality undervalued stocks.
- Prioritise cash returns by reviewing companies that offer resilient income profiles through the 7 dividend fortresses.
- Focus on resilience by shortlisting companies that pair solid finances with lower overall risk using the 82 resilient stocks with low risk scores.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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