TYSONS CORNER, Va. - MicroStrategy Incorporated (NASDAQ:MSTR), a leading business intelligence company valued at $83.81 billion, has partnered with STACKIT, the cloud and co-location provider of Schwarz Group's digital division, to launch the MicroStrategy Sovereign European Cloud. According to InvestingPro data, the company's stock has shown significant volatility with a beta of 3.26, reflecting its dynamic market position. This new offering aims to serve highly regulated businesses in Europe, allowing them to utilize MicroStrategy's cloud-native AI/BI platform while adhering to strict data sovereignty laws.
The collaboration ensures that operations and data hosting for MicroStrategy ONE on STACKIT are confined within the European Union, with Germany and Austria as the primary locations. STACKIT's infrastructure meets high EU security standards and complies with GDPR, boasting certifications such as ISO 27001, C5, ISAE 3000 (SOC 2), and ISAE 3402.
MicroStrategy ONE on STACKIT features the Auto™ AI bot for easy access to business intelligence insights and integrates various analytics tools to help companies develop and deploy AI applications securely and at scale. The partnership is designed to safeguard customer data and provide a stable investment environment, backed by the economic strength of the Schwarz Group, one of the world's largest retailers. With a robust gross profit margin of 73.56%, MicroStrategy maintains strong operational efficiency despite current market challenges. InvestingPro analysis indicates the company is currently trading above its Fair Value.
Bernie Wagner, CEO of STACKIT, emphasized the importance of data sovereignty and the value of the partnership for European customers looking to future-proof their investments in MicroStrategy. Phong Le, CEO of MicroStrategy, reiterated the security and compliance benefits for European customers, highlighting the strategic alignment of both companies in providing independent and economically stable solutions.
MicroStrategy, recognized as the world's first and largest Bitcoin Treasury Company, continues to explore Bitcoin applications leveraging its extensive experience in enterprise analytics software. The partnership with STACKIT represents a strategic move to enhance data-driven decision-making capabilities for government, healthcare, and financial services organizations across Europe.
This development is based on a press release statement, and for more information on the MicroStrategy European Sovereign Cloud, interested parties are directed to the company's website. Investors should note that MicroStrategy's next earnings report is scheduled for February 4, 2025. For deeper insights into MicroStrategy's financial health and market position, including 16 additional ProTips and comprehensive analysis, check out the full research report available on InvestingPro.
In other recent news, MicroStrategy has been actively strengthening its financial position. The company has made significant moves, including plans to raise up to $2 billion via perpetual preferred stock offerings. This strategy is part of a larger initiative to raise $21 billion of equity and fixed income instruments over the next three years. The funds raised will be directed towards increasing its Bitcoin holdings.
MicroStrategy has also been selling Class A common stock shares, with recent sales totaling approximately $209 million. The proceeds from these sales have been used to purchase additional Bitcoin, further emphasizing the company's aggressive strategy in the cryptocurrency market.
Interactive Brokers (NASDAQ:IBKR), a brokerage firm, has reportedly increased margin requirements for all MicroStrategy products, indicating the company's increased risk profile.
Benchmark analysts have maintained a Buy rating on MicroStrategy, based on a sum-of-the-parts analysis, which includes the projected value of MicroStrategy's Bitcoin holdings by the end of 2026.
The company has also expanded its board of directors, electing three new members. These recent developments highlight MicroStrategy's commitment to strengthening its financial position and its aggressive strategy in the cryptocurrency market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.