MicroStrategy Incorporated (NASDAQ:MSTR) shares are trading lower on Friday. The company, which does business as Strategy, reported second-quarter revenue of $114.49 million, beating analyst estimates of $112.96 million.

The company reported second-quarter adjusted earnings of $32.52 per share on Thursday. Following the earnings release, Benchmark analyst Mark Palmer reiterated the Buy rating on Strategy, raising the price forecast to $705.

Palmer notes that while most companies would make headlines with $14 billion in operating income and $10 billion in net profit, Strategy’s second-quarter results stood out more for the two-hour call where executives outlined their ambition to transform the firm from a bitcoin-focused treasury into the world’s largest corporate treasury.

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Despite the impressive numbers, fueled largely by Bitcoin’s (CRYPTO: BTC/USD) surge and new fair-value accounting rules (ASU 2023-08), Palmer highlights that the reported $32.60 in diluted EPS and the $14 billion crypto-driven gain felt secondary by the end of the call.

He observes that executives, including Michael Saylor, appeared unfazed by the record-setting quarter, downplaying the earnings as just another marker in a broader, long-term strategy aimed at reshaping the firm’s place in corporate finance.

Palmer maintains the rating and raises the price forecast, using a sum-of-the-parts approach that factors in the estimated value of its bitcoin holdings by Year Ending (YE) 2026, a 10x multiple on projected fiscal year 2026 bitcoin gains, and the expected YE26 valuation of its software segment.

This forecast assumes Bitcoin reaches $225,000 by the end of 2026. Palmer highlights that much of the earnings call focused on a new capital strategy aimed at increasing bitcoin exposure and transforming the treasury into a long-term profit center.

At the heart of this plan is a perpetual preferred share class, STRC, which Executive Chairman Michael Saylor described as the company’s “iPhone moment”, a 6.1x overcollateralized, short-duration instrument designed for price stability, currently offering an effective yield of 9.5%. For fiscal year 2025, the analyst expects the company to report earnings per share of $15.95.

Price Action: MSTR shares are trading lower by 6.15% to $15.95 at last check Friday.

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