The Top 5 Analyst Questions From MicroStrategy’s Q2 Earnings Call

MicroStrategy’s second quarter saw headline results that exceeded Wall Street’s expectations, yet the market responded negatively. Management attributed the quarter’s performance primarily to two factors: a significant rise in the price of Bitcoin, which benefited from broader institutional adoption and government support, and the adoption of new fair value accounting for digital assets. CFO Andrew Kang highlighted that the company’s ongoing issuance of Bitcoin-backed credit instruments and continued accumulation of unencumbered Bitcoin holdings were key contributors to growth, emphasizing the company’s role as a leader in the Bitcoin Treasury space.

Is now the time to buy MSTR? Find out in our full research report (it’s free).

MicroStrategy (MSTR) Q2 CY2025 Highlights:

• Revenue: $114.5 million vs analyst estimates of $113.1 million (2.7% year-on-year growth, 1.2% beat)
• EPS (GAAP): $32.51 vs analyst estimates of $6.76 (significant beat)
• Adjusted Operating Income: -$1.31 million vs analyst estimates of -$16.24 million (-1.1% margin, 91.9% beat)
• EPS (GAAP) guidance for the full year is $80 at the midpoint, beating analyst estimates by 1,638%
• Operating Margin: 12,256%, up from -180% in the same quarter last year
• Billings: $113.3 million at quarter end, up 13.5% year on year
• Market Capitalization: $111.8 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From MicroStrategy’s Q2 Earnings Call

• Lance William Vitanza (TD Bank) asked about the risk of Bitcoin concentration and potential negative effects on adoption. CEO Michael Saylor argued that greater holdings accelerate adoption and benefit the ecosystem, while President Phong Le downplayed risks of market saturation.
• Lyn Alden (independent analyst) questioned the resilience of MicroStrategy’s capital structure in a prolonged Bitcoin bear market. Management emphasized that shifting to perpetual preferred equity reduces refinancing risk and enhances the ability to withstand large drawdowns, with Saylor stating the structure is “bulletproof compared to that one” used during prior downturns.
• Samson Mow (Bitcoin strategist) inquired about the yield generation potential of preferred shares during sideways or stagnant Bitcoin price periods. Saylor explained that lower Bitcoin volatility improves credit ratings, increasing the viable leverage and attractiveness of the instruments.
• Brian H. Dobson (Clear Street) asked about regulatory priorities and future product offerings. Saylor highlighted the need for clearer definitions in digital asset taxonomy and suggested that international expansion and further yield curve development are under consideration.
• Mark Anthony Palmer (Benchmark) raised the topic of proof of reserves to enhance investor trust. Management responded that while increased transparency is a goal, operational complexity and security concerns must be weighed appropriately before implementing such measures.

Story Continues### Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the pace at which MicroStrategy transitions its capital structure from convertible debt to perpetual preferreds, (2) the market’s acceptance and seasoning of new products such as STRC and Stretch, and (3) the evolution of Bitcoin’s price and volatility, which will directly impact reported earnings and capital-raising ability. Execution on investor education and regulatory clarity will also serve as important milestones.

MicroStrategy currently trades at $395.71, down from $401.72 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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