Analysts Predict MSTR Stock Rally to $680 As Strategy Reports $10B In Net Income

MSTR stock regained crucial $400 levels on Thursday, as Michael Saylor’s Strategy reported a massive $10 billion in net income during the Q2 earnings report. In its latest guidance, company CEO Phong Le said that they are not looking for any further equity dilution at the current mNAV levels. This could lead to a strong stock rally with potential upside to $500 and beyond.

MSTR Stock on Investors’ Radar After Strategy Q2 Earnings

After the Q2 earnings report on Thursday, July 31, Strategy CEO Phong Le issued guidance on further stock dilution to maintain the company’s Bitcoin Treasury. As of the current price of $401, the MSTR stock mNAV is at 1.7, with 628,791 BTC holdings in total. This mNAV is currently below 2.5 threshold under which Strategy will not issue MSTR for paying interest or other debt obligations. This announcement comes just as Strategy files for $4.2 billion STRC offering to fund its Bitcoin purchases.

Market analysts are hopeful for a MSTR share upside moving ahead. Over the past month, the stock has been flirting around $400, with a modest 8% upside. Analysts at TD Cowen have already raised the target price from $590 to $680.

As we can see from the above image, once the MSTR stock crosses 2.5 mNAV, Strategy will weigh on new stock issuance possibilities. Above 4.0, mNAV, it will actively issue the MSTR shares for fresh Bitcoin purchases. After the successful $2.5 billion STRC IPO, the company used the net proceeds towards Bitcoin purchases earlier this week.

Strategy Q2 Net Income Jumps $10 Billion

Michael Saylor’s Strategy reported a net income of $10 billion for Q2 2025, largely driven by gains in Bitcoin’s market price. The company also announced plans to raise $4.2 billion through the issuance of STRC perpetual preferred stock, with proceeds earmarked for further Bitcoin purchases.

During the quarter, Strategy increased its Bitcoin holdings by nearly 20%, rising from 499,000 BTC to 597,000 BTC. Including post-quarter acquisitions, the firm now holds 628,800 BTC i.e. 3% of the total BTC supply. Speaking on the development, Andrew Kang, Chief Financial Officer at Strategy said:

“Strategy has achieved a year-to-date BTC Yield of 25%, meeting our full year target well ahead of our initial timeline. As a result, our BTC $ Gain now exceeds $13 billion, and the increase in the price of bitcoin in the second quarter drove second quarter operating income of $14 billion and Q2 diluted EPS of $32.60″.

Saylor is clearly leading with his Bitcoin accumulation strategy, with other corporate players drawing a leaf from the playbook. Following the company’s Q2 earnings report, the BTC price came under selling pressure, correcting 2.5% and dropping to $115,000 levels.