Bitcoin News Today: MicroStrategy's Cryptocurrency Gamble: Software Profits Face Off Against Bitcoin Price Swings
- MicroStrategy reported mixed Q3 results with $8.42 EPS (below estimates) but $128.69M revenue (above estimates), driven by 62.9% software revenue growth. - CEO Phong Le reaffirmed $70.9B Bitcoin portfolio (640,808 coins) and 2025 targets of $20B Bitcoin gains, contingent on $150K BTC price by year-end. - $20B year-to-date capital raises via preferred shares (STRK/STRF) and B- credit rating highlight aggressive crypto strategy amid Bitcoin's $125K price drop from October peak. - Analysts remain divided: Z
MicroStrategy (NASDAQ:MSTR) delivered a mixed performance in the third quarter, even as its
The report highlighted MicroStrategy’s commitment to both its software business and digital assets. Revenue from product licenses and subscriptions jumped 62.9% year-over-year to $48 million, making up 41.9% of total revenue, according to
Seeking Alpha . Nonetheless, adjusted earnings missed expectations, with Q3 adjusted EPS at $8.42, below the $11.69 million consensus. The company pointed to recent Bitcoin price swings—now under $125,338 and down from October highs—as a key factor, according to TradingView .
MicroStrategy maintained its 2025 outlook, forecasting $80 earnings per share and $34 billion in operating income, assuming Bitcoin reaches $150,000 by year-end, as reported by
Seeking Alpha . However, this projection remains uncertain due to Bitcoin’s unpredictable price movements. The company’s fundraising efforts, including preferred equity sales such as STRK and STRF, have brought in $20 billion this year, and S&P has given MicroStrategy a B- credit rating, according to TradingView.Market experts remain split on MicroStrategy’s future. While its large Bitcoin reserves and expanding software revenues are attractive, concerns linger over its high valuation—currently at 1.77 times price-to-book. Zacks Investment Research rated the stock as “Hold,” pointing to regulatory risks and economic challenges. Meanwhile, competitors like Marathon Digital Holdings (MARA) and Riot Platforms (RIOT) have outperformed MicroStrategy, and IREN Limited’s stock has soared 561.8% this year.
The Trump administration’s policy to build a strategic Bitcoin reserve has benefited MicroStrategy, but ongoing U.S. government shutdowns and market uncertainty add to the risks. As of October 26, the company’s Bitcoin holdings had an unrealized gain of $12.9 billion, though this could quickly change if the market declines, Seeking Alpha observed.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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