TLDR
- Strategy made zero Bitcoin transactions last week following its initial purchase since June on August 31
- Shares declined 3% to $138.43 during premarket hours on Tuesday
- The firm maintains a Bitcoin treasury of 845,050 BTC with an average acquisition cost of $75,412 per coin
- Canaccord Genuity increased its MSTR price target to $179 while maintaining a “buy” recommendation
- Bitcoin declined more than 1% during the last 24 hours, trading at $78,443
Strategy Inc. reported no Bitcoin transactions during the previous week, based on a regulatory disclosure filed Tuesday. This announcement comes after the company completed its first crypto acquisition since the end of June, purchasing 4,603 Bitcoin during the period spanning August 24 through August 30 for a total of $369.7 million, representing an average cost of $80,318 per token.
Shares of MSTR declined 3% to reach $138.43 during Tuesday’s premarket session. The stock had previously closed Friday’s trading session with a 1.4% loss.
The equity has surged 73% from its recent bottom of $82.31 reached on June 26. However, year-to-date performance shows a 6% decline.
Strategy’s Bitcoin holdings currently stand at approximately 845,050 coins, purchased at an average cost of roughly $75,412 per token. This position establishes the company as the world’s largest publicly traded corporate Bitcoin holder.
Bitcoin prices decreased over 1% in the preceding 24-hour period, settling at $78,443 based on CoinDesk data. Coinbase shares dropped 1.6%, whereas Robinhood advanced 1.8%.
Analyst Outlook
Canaccord Genuity upgraded its price objective on MSTR from $175 to $179 on Tuesday, reaffirming a “buy” recommendation. This revised target suggests approximately 25% potential appreciation from present price levels.
The collective analyst sentiment stands at “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 advise Sell.
Bearish perspectives remain present. TD Cowen reduced its objective from $400 down to $260, while Barclays decreased its target from $130 to $125, although both firms retained constructive recommendations. Mizuho established a $165 target.
Earnings and Financials
Strategy disclosed a quarterly loss of $24.45 per share in its latest earnings report, significantly exceeding the consensus projection of a $2.19 loss. Revenue totaled $122.37 million, representing a 6.9% year-over-year increase, falling marginally short of analyst expectations of $122.90 million.
The business operates with a negative return on equity of 74.18% and a negative net margin exceeding 6,000%. Wall Street analysts project a full-year loss of $23.74 per share.
Regarding insider activity, CEO Phong Le acquired 11,000 MSTR shares in June at $90.80 per share. Director Jarrod Patten divested 2,775 shares in August at $125.33 each. Collectively, insiders sold 13,950 shares over the past 90 days. Insiders control approximately 6.49% of outstanding shares, while institutional investors own 59.84%.
Strategy stock commenced Tuesday’s trading at $142.80, reflecting a market capitalization of $54.87 billion. The 52-week trading range extends from $81.81 to $365.21.
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