Strategy Inc.’s MSTR growing dependence on Bitcoin treasury operations is overshadowing growth in its core software business, raising concerns about whether the company’s operating revenue base is losing relevance. In first-quarter 2026, the company generated just $124.3 million in revenues, up 11.9% year over year, while holding more than 818,334 Bitcoins valued at roughly $64 billion. The widening gap highlights how rapidly Strategy’s Bitcoin-focused operations have expanded relative to its traditional enterprise analytics business.
At the same time, the company’s financial performance is becoming increasingly tied to Bitcoin price movements rather than underlying operating execution. Strategy reported a massive $14.47 billion operating loss in the first quarter, primarily caused by a $14.46 billion unrealized digital asset loss following Bitcoin’s decline during the period. Management also continues emphasizing Bitcoin-centric KPIs such as BTC Yield, BTC Gain and Bitcoin Per Share, reflecting the company’s growing focus on digital asset accumulation and treasury expansion.
Strategy has further accelerated capital raising to support additional Bitcoin purchases, generating nearly $11.7 billion year to date through common equity and preferred stock offerings. Recent company events and updates since April 2026 have also focused heavily on institutional Bitcoin adoption, Digital Credit products and treasury strategies rather than software-driven growth initiatives.
Although Strategy continues investing in AI-powered analytics offerings, the company’s broader growth narrative now appears increasingly dependent on Bitcoin-related activities. The Zacks Consensus Estimate projects revenue growth of just 5.59% for 2026 and relatively negative growth expected in 2027, raising concerns about the long-term growth of the core software business.
How Rivals Compare to MSTR's Bitcoin Strategy
MARA Holdings MARA is pursuing a more diversified Bitcoin treasury strategy than MSTR. While MSTR focuses on maximizing Bitcoin ownership, MARA combines Bitcoin holdings, mining operations and energy infrastructure. MARA held 35,303 Bitcoins in the first quarter of 2026 and used part of its treasury to reduce debt. It also benefits from low energy costs, strong hash rate growth and AI/data center opportunities, providing revenue streams beyond Bitcoin appreciation.
Riot Platforms, Inc. RIOT follows a more balanced Bitcoin strategy. While MSTR primarily raises capital to acquire Bitcoin, RIOT uses its Bitcoin treasury to fund data center expansion and support its “power-first” strategy. RIOT benefits from 2 gigawatts of power capacity, ESS Metron and growing contracted data center revenues. Unlike MSTR’s pure Bitcoin accumulation model, RIOT combines Bitcoin ownership, mining operations and infrastructure monetization, although its smaller Bitcoin treasury limits direct Bitcoin exposure.
MSTR’s Price Performance, Valuation & Estimates
Shares of Strategy have gained 5.2% in the year-to-date period, outperforming the Zacks Finance sector’s growth of 0.8% and the Financial - Miscellaneous Services industry’s decline of 7.7%.
MSTR’s YTD Price Performance
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MSTR has a Value Score of F. It is currently trading at a Price/Book ratio of 1.53X compared to the sector’s 4.37X.
MSTR’s Valuation
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The Zacks Consensus Estimate for MSTR’s 2026 earnings is pegged at $116.7 per share, down 14.4% over the past 30 days. The estimate indicates a sharp year-over-year improvement from a loss of $15.23 per share.
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MSTR stock currently has a Zacks Rank #5 (Strong Sell).
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This article originally published on Zacks Investment Research (zacks.com).