Key Points
- Strategy recorded zero Bitcoin transactions last week following its first acquisition since June on August 31
- Shares fell 3% to $138.43 during Tuesday’s premarket session
- Strategy’s Bitcoin holdings total 845,050 BTC with an average acquisition cost of $75,412 per coin
- Canaccord Genuity increased its MSTR price target to $179 while maintaining its “buy” recommendation
- Bitcoin declined more than 1% over 24 hours, trading at $78,443
Strategy Inc. reported no Bitcoin buying or selling activity for the previous week in a Tuesday regulatory disclosure. This marks a pause following the company’s initial purchase since late June, when it acquired 4,603 Bitcoin during the period of August 24-30 for $369.7 million, representing an average cost of $80,318 per token.
Shares of MSTR fell 3% to $138.43 during premarket hours on Tuesday. The stock had previously finished Friday’s session down 1.4%.
The equity has climbed 73% from its recent bottom of $82.31 reached on June 26. However, year-to-date performance shows a 6% decline.
Strategy’s Bitcoin treasury currently stands at approximately 845,050 BTC, purchased at an average cost of roughly $75,412 per unit. This position establishes the firm as the world’s largest publicly traded corporate Bitcoin holder.
Bitcoin decreased over 1% during the previous 24-hour period to $78,443, based on CoinDesk data. Coinbase shares retreated 1.6%, whereas Robinhood advanced 1.8%.
Wall Street Perspective
Canaccord Genuity upgraded its price objective on MSTR from $175 to $179 on Tuesday while reaffirming its “buy” stance. This revised target suggests approximately 25% potential upside from present trading levels.
The overall Wall Street consensus registers as “Moderate Buy,” featuring an average price objective of $236.65. Among 20 tracked analysts, 14 assign a Buy rating, two recommend Strong Buy, two suggest Hold, and two rate it as Sell.
Bearish voices exist as well. TD Cowen reduced its target from $400 down to $260, while Barclays trimmed its objective from $130 to $125, although both firms preserved positive recommendations. Mizuho established a $165 target.
Financial Performance and Results
Strategy disclosed a per-share loss of $24.45 in its latest quarterly report, significantly exceeding the consensus forecast of a $2.19 loss. The company generated $122.37 million in revenue, representing a 6.9% year-over-year increase, falling marginally short of the $122.90 million analyst projection.
Strategy operates with a negative return on equity of 74.18% and a negative net margin exceeding 6,000%. Wall Street forecasts anticipate a full-year per-share loss of $23.74.
Regarding insider transactions, CEO Phong Le acquired 11,000 MSTR shares in June at $90.80 apiece. Director Jarrod Patten divested 2,775 shares in August at $125.33 each. Collectively, insiders sold 13,950 shares during the past 90 days. Insider ownership stands at approximately 6.49%, while institutional investors control 59.84%.
MSTR stock commenced Tuesday trading at $142.80, carrying a market capitalization of $54.87 billion. The 52-week trading range extends from $81.81 to $365.21.
