Key Takeaways
- Strategy reported zero Bitcoin transactions for the prior week following its August 31 purchase, its first acquisition since June
- Shares declined 3% to $138.43 during premarket hours on Tuesday
- Strategy’s Bitcoin holdings total 845,050 BTC with an average acquisition cost of $75,412 per coin
- Canaccord Genuity lifted its MSTR price target to $179 while maintaining a “buy” recommendation
- Bitcoin declined more than 1% over 24 hours, trading at $78,443
According to a regulatory disclosure filed Tuesday, Strategy Inc. executed no Bitcoin transactions during the previous week. This follows the company’s late August activity when it acquired 4,603 Bitcoin between August 24 and August 30, spending $369.7 million at an average cost of $80,318 per coināmarking its first purchase since late June.
During premarket trading Tuesday, MSTR shares fell 3% to $138.43. The stock had previously closed Friday’s session with a 1.4% decline.
Despite the recent pullback, the equity has surged 73% from its June 26 low of $82.31. However, year-to-date performance shows a 6% decline.
Strategy maintains a Bitcoin position of approximately 845,050 coins, purchased at an aggregate average price of roughly $75,412 per unit. This positions the firm as the world’s leading corporate Bitcoin holder.
The cryptocurrency itself dropped over 1% during the past day, trading at $78,443 per CoinDesk data. Coinbase shares decreased 1.6%, while Robinhood advanced 1.8%.
Wall Street Perspective
On Tuesday, Canaccord Genuity increased its price objective for MSTR from $175 to $179, reaffirming a “buy” recommendation. This target suggests approximately 25% potential upside from present levels.
The overall Wall Street consensus stands at “Moderate Buy,” with an average price objective of $236.65. Among 20 tracked analysts, 14 rate the stock as Buy, two as Strong Buy, two as Hold, and two as Sell.
However, sentiment isn’t uniformly optimistic. TD Cowen reduced its target from $400 down to $260, and Barclays trimmed its projection from $130 to $125, although both maintained constructive ratings. Mizuho established a $165 target.
Financial Performance
In its latest quarterly report, Strategy posted a loss of $24.45 per share, significantly exceeding the consensus forecast for a $2.19 loss. The company generated $122.37 million in revenue, representing 6.9% year-over-year growth and 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 anticipates a full-year loss of $23.74 per share.
Regarding insider activity, CEO Phong Le purchased 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 over the trailing 90 days. Insider ownership stands at approximately 6.49%, while institutional investors control 59.84%.
Strategy shares commenced trading Tuesday at $142.80, yielding a market capitalization of $54.87 billion. The stock’s 52-week trading range spans from $81.81 to $365.21.
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