MSTR Stock Slips Even With Bitcoin Above $81,900 – Michael Saylor’s ‘Never Sell’ Pivot Gets Wall Street Support

• MSTR’s stock edged lower in early trade on Wednesday even as Bitcoin climbed to a three-month high above $81,900.
• Executive chairman Michael Saylor’s comments during the earnings call mark a shift from Strategy’s long-standing “buy and hold” approach to Bitcoin.
• Wall Street supports the narrative with BTIG and Clear Street raising price targets and maintaining ‘Buy’ ratings.

Shares of Michael Saylor-backed Strategy (MSTR), which typically move in line with Bitcoin (BTC), fell in early morning trade on Wednesday even as BTC’s price rose after the company said it may consider selling some of its holdings moving forward. 

"Our ability to sell Bitcoin either to buy U.S. dollars or sell Bitcoin to buy debt if it's accretive to Bitcoin per share is something that we would consider doing going forward,” executive chairman Michael Saylor said during the first quarter (Q1) earnings call. 

MSTR’s stock edged 0.35% lower in pre-market trade, while Bitcoin’s price rose 1.75% in the last 24 hours to hit a three-month high of over $81,900. Retail sentiment around MSTR on Stocktwits climbed to ‘bullish’ from ‘neutral’ territory over the past day. Chatter remained at ‘high’ levels. 

Some retail traders on the platform were surprised that the stock didn’t take a bigger hit after Saylor hinted that the company may sell some of its Bitcoin holdings. 

Historically, the company has emphasized a “buy and hold” approach, positioning Bitcoin as a long-term treasury reserve asset. The possibility of selling holdings, whether to raise cash or restructure debt, represents a shift that could broaden its financial toolkit.

Earnings Miss Overshadowed By BTC Selling Narrative

Strategy reported a massive loss per share of $42.93 in Q1, more than double the expected loss of $20.99, according to Koyfin data. Revenue came in at $123 million, beating Wall Street’s consensus of $118 million. 

Most retail traders on Stocktwits were unfazed by the company’s loss, with one citing that the next quarterly earnings could be in the green as Bitcoin’s price climbs. 

Wall Street Bullish On MSTR’s Bitcoin Sales Plan

In addition to bullish retail commentary, Wall Street also backed the company’s plan to sell some of its Bitcoin holdings. BTIG raised its price target on MSTR to $350 from $250, implying a potential upside of over 87% from Tuesday’s close. “The big takeaway from the company's earnings call was the management's commentary that it is open to selling Bitcoin when it is advantageous to the company,” the firm told investors in a research note cited by TheFly, keeping a ‘Buy’ rating on the shares. 

During the Q1 earnings call, Saylor said that selling Bitcoin could be justified if it improves “Bitcoin per share,” including scenarios in which proceeds are used to reduce debt or optimize the capital structure. “It's an important point because I think there is a misconception that the breakeven point is 1.0x,” he said.

Clear Street also raised its price target to $240 from $233 and maintained a ‘Buy’ rating. The price target implies a potential upside of nearly 30% from Tuesday's close. Clear Street said Strategy’s continued Bitcoin accretion and capital-raising activity was impressive. It applauded that Strategy had raised $11.7 billion year-to-date despite a challenging environment for digital asset-focused companies.

Strategy currently holds 818,334 BTC on its balance sheet, valued at around $67 billion. Its multiple of net asset value (mnAV) stands at around 1.24. 

MSTR’s shares have gained over 20% this year, while Bitcoin’s price remains down by over 6%. 

Read also: Arthur Hayes Slams CLARITY Push – Crypto 'Doesn't Need' Regulation, Only Benefits Centralized Companies

For updates and corrections, email newsroom[at]stocktwits[dot]com