MicroStrategy (MSTR, Financial) shares saw a slight increase of 0.15% today, influenced by Nasdaq's recent announcement of its addition to the Nasdaq-100 index. This inclusion highlights MicroStrategy's prominence within major non-financial companies.
MicroStrategy's (MSTR, Financial) stock performance is notably tied to its substantial investment in Bitcoin. The company has aggressively expanded its Bitcoin holdings, now totaling approximately 439,000 Bitcoins. This strategy has reaped significant benefits, especially with Bitcoin's value soaring above $107,000, thereby significantly enhancing the worth of these investments.
However, from a valuation perspective, MicroStrategy is deemed "Significantly Overvalued" according to its GF Value. The GF Value of MSTR is estimated at $21.03, which is substantially lower than its current trading price of $409.29. Investors can explore more about this valuation on the [GF Value](https://www.gurufocus.com/term/gf-value/MSTR) page.
MicroStrategy's financial health shows a mixed picture. It has a robust Altman Z-Score of 12.29, indicating strong financial stability. However, the company is operating at a loss, as evidenced by a negative EBITDA margin of -191.13% and an operating income loss recorded in 58% of the past twelve quarters.
Concerns persist regarding MicroStrategy's continuous issuance of debt, accumulating over $2.8 billion in the past three years. The company's Piotroski F-Score of 2 underlines potential operational weaknesses, and with a low predictability score of -99, future earnings projections are uncertain.
The recent strategic moves of similar companies like Mara Holdings (MARA) and Riot Platforms (RIOT) illustrate the impact of MicroStrategy's approach on the industry. Both MARA and RIOT have started aggressively purchasing Bitcoins, leading to their stock prices rising alongside Bitcoin's increase.
Mara Holdings (MARA) now holds 40,435 Bitcoins, a significant portion acquired through mining operations, while Riot Platforms (RIOT) announced a $579 million debt offering to purchase approximately 5,500 Bitcoins. These strategic moves further cement their ties to Bitcoin's market trajectory.
