Strategy Q2 revenue rises 6.9% but slightly misses estimates amid bitcoin price decline
Strategy Q2 revenue rises 6.9% but slightly misses estimates amid bitcoin price decline
Overview
US bitcoin treasury and analytics firm's Q2 revenue rose 6.9% but slightly missed analyst expectations
Q2 net loss per share widened, missing analyst expectations, due to large unrealized digital asset loss
Company repurchased $28.9 mln of STRC preferred shares at a discount and set $1 bln buyback programs
Outlook
Company intends to maintain STRC dividend rate at 12.00% until trading near $100/share
Company expects preferred equity distributions to be treated as non-taxable return of capital for 10+ years
Company plans regular STRC repurchases while shares trade below $100, scaling by price and liquidity
Result Drivers
BITCOIN PRICE DECLINE - Co said operating and net losses were driven by an $8.32 bln unrealized loss on digital assets after a significant bitcoin price drop
BITCOIN ACCUMULATION - Co increased bitcoin holdings by 11% in Q2 despite market volatility, per CEO Phong Le
CAPITAL MANAGEMENT - Co repurchased $28.9 mln of STRC preferred shares at a 13% discount and reduced convertible debt by 18%
Company press release: ID:nBw5FbT5wa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Miss* | $122.37 mln | $122.91 mln (11 Analysts) |
Q2 Loss Per Share | Miss | $24.45 | $7.52 (7 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Strategy Inc is $240.00, about 157.2% above its July 29 closing price of $93.33
Reuters Recommended Reads
July 28 - Bitcoin miner and AI firm Ionic Digital valued at $2.25 billion in Nasdaq debut
July 30 - Coinbase beats much of customer lawsuit over US token sales
July 29 - Morningstar Q2 revenue, adjusted EPS rise on credit segment growth
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)