Strategy (NASDAQ:MSTR) Trading Down 7.8% – Here’s What Happened
by Sarita Garza · The Markets DailyStrategy Inc (NASDAQ:MSTR – Get Free Report) traded down 7.8% on Tuesday . The company traded as low as $159.17 and last traded at $160.1510. 5,344,341 shares changed hands during trading, a decline of 77% from the average session volume of 23,024,195 shares. The stock had previously closed at $173.71.
Trending Headlines about Strategy
Here are the key news stories impacting Strategy this week:
- Positive Sentiment: Strategy disclosed another massive buy — ~22,305 BTC (~$2.13B), pushing its public holdings past 700,000 BTC, underscoring management’s continued commitment to using capital markets to accumulate bitcoin. Article Title
- Positive Sentiment: Company confirmed it expanded bitcoin holdings using proceeds from its at‑the‑market equity program, signaling a steady, planned buy strategy that can increase asset backing per share over time. Article Title
- Positive Sentiment: Institutional buying interest surfaced — reports that Vanguard made a first ~$505M investment in Strategy signal growing institutional exposure to MSTR shares. Institutional support can provide a floor under the stock in volatile periods. Article Title
- Neutral Sentiment: Smaller, public funds have taken positions (e.g., a U.S. pension fund reported a surprise buy), showing diversified holder base but not necessarily large directional impact. Article Title
- Neutral Sentiment: State-level exposure reported — Louisiana’s state employees fund disclosed a small MSTR stake, reflecting incremental institutional interest but modest scale relative to the company’s market cap. Article Title
- Negative Sentiment: Analysts and outlets question whether the bitcoin‑treasury feedback loop still works — with BTC down materially from recent highs, MSTR’s equity now reacts less favorably to trades and faces larger mark-to-market swings on its bitcoin inventory. Article Title
- Negative Sentiment: Market pressure on crypto — commentary labels today’s action a “crypto winter” and links MSTR weakness to broader BTC weakness and risk-off flows that have pushed the stock significantly lower over recent months. Article Title
- Negative Sentiment: Deep recent drawdown and analyst caution — coverage highlights a ~59–62% decline over recent months, large unrealized bitcoin losses on the balance sheet, and elevated volatility/valuation concerns that may keep downside risk elevated until bitcoin stabilizes. Article Title
Analysts Set New Price Targets
A number of research firms have commented on MSTR. China Renaissance began coverage on shares of Strategy in a research report on Wednesday, October 15th. They issued a “buy” rating and a $473.00 target price on the stock. Cowen reaffirmed a “buy” rating on shares of Strategy in a research report on Thursday, January 15th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Strategy in a report on Friday, December 5th. Wells Fargo & Company restated an “equal weight” rating and set a $54.00 price target (down from $65.00) on shares of Strategy in a research note on Tuesday, September 30th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Strategy in a research report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, Strategy presently has an average rating of “Moderate Buy” and a consensus price target of $435.44.
View Our Latest Stock Analysis on Strategy
Strategy Stock Performance
The stock’s fifty day simple moving average is $174.60 and its 200-day simple moving average is $285.39. The company has a market capitalization of $46.69 billion, a price-to-earnings ratio of 7.57 and a beta of 3.42. The company has a current ratio of 0.66, a quick ratio of 0.66 and a debt-to-equity ratio of 0.16.
Strategy (NASDAQ:MSTR – Get Free Report) last announced its quarterly earnings data on Thursday, October 30th. The software maker reported $8.42 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.10) by $8.52. Strategy had a return on equity of 20.98% and a net margin of 1,667.09%.The business had revenue of $128.69 million for the quarter, compared to analysts’ expectations of $116.65 million. During the same period last year, the firm earned ($1.56) earnings per share. The company’s revenue for the quarter was up 10.9% compared to the same quarter last year. Strategy has set its FY 2025 guidance at 80.000-80.000 EPS.
Insiders Place Their Bets
In related news, EVP Wei-Ming Shao sold 5,334 shares of the stock in a transaction on Wednesday, November 12th. The stock was sold at an average price of $226.36, for a total value of $1,207,404.24. Following the transaction, the executive vice president owned 32,726 shares of the company’s stock, valued at $7,407,857.36. This represents a 14.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Carl J. Rickertsen purchased 5,000 shares of the business’s stock in a transaction on Monday, January 12th. The stock was acquired at an average price of $155.88 per share, for a total transaction of $779,400.00. Following the completion of the purchase, the director owned 5,000 shares of the company’s stock, valued at $779,400. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders bought 6,112 shares of company stock worth $885,408 and sold 13,177 shares worth $2,843,166. 8.46% of the stock is currently owned by company insiders.
Institutional Inflows and Outflows
A number of hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its holdings in Strategy by 7.3% in the third quarter. Vanguard Group Inc. now owns 19,884,275 shares of the software maker’s stock valued at $6,406,912,000 after purchasing an additional 1,344,519 shares in the last quarter. Capital International Investors boosted its holdings in shares of Strategy by 2.6% in the 3rd quarter. Capital International Investors now owns 15,014,295 shares of the software maker’s stock valued at $4,837,778,000 after buying an additional 383,207 shares in the last quarter. State Street Corp grew its position in shares of Strategy by 9.2% in the 3rd quarter. State Street Corp now owns 5,989,048 shares of the software maker’s stock valued at $1,929,731,000 after buying an additional 504,479 shares during the last quarter. Capital Research Global Investors raised its stake in Strategy by 33.6% during the 3rd quarter. Capital Research Global Investors now owns 4,205,258 shares of the software maker’s stock worth $1,354,982,000 after acquiring an additional 1,057,804 shares in the last quarter. Finally, Norges Bank purchased a new stake in Strategy in the second quarter valued at $1,203,062,000. Hedge funds and other institutional investors own 59.84% of the company’s stock.
About Strategy
Strategy, formerly known as MicroStrategy, Incorporated (NASDAQ: MSTR) is a global provider of enterprise analytics and mobility software. The company’s flagship platform offers business intelligence, data discovery, and advanced visualizations that enable organizations to analyze large volumes of data and deliver actionable insights. In addition to traditional on-premises deployments, Strategy provides a range of cloud-based services and managed offerings that allow customers to leverage the power of its analytics tools without managing complex infrastructure.
Founded in 1989 by Michael J.