MicroStrategy Stock Edges Lower Ahead Of Q4 Earnings: Retail’s Uneasy Amid BTC Downtrend

Shares of Strategy (MSTR), previously known as MicroStrategy, fell more than 2% during mid-day trade on Wednesday as the company gears up for its fourth-quarter earnings report after the bell.

According to data from Finchat, Strategy is expected to post $122.73 million in revenue during the fourth quarter, implying a fall of over 7% year over year.

The Bitcoin (BTC) proxy is expected to post a loss per share of $0.08, compared to earnings of $0.50 per share during the same period last year.

Ahead of Strategy’s earnings, Bitcoin prices were also down more than 0.3% at the time of writing, hovering at a little over $97,600.

Earlier this week, Strategy hit the brakes on its weekly BTC purchases after buying the asset consecutively for 12 weeks.

In a filing with the U.S. Securities and Exchange Commission (SEC), Strategy noted that its Bitcoin holdings stand at 471,107, with a purchase price of $30.4 billion and an average price of $64,511 per Bitcoin.

Strategy’s Bitcoin holdings are worth $45.61 billion, with an unrealized gain of over 50%.

Earlier last week, brokerage firm Mizuho initiated coverage for Strategy with an ‘Outperform’ rating and a price target of $515. This presents an upside of over 51% from current levels.

Mizuho analyst Dan Dolev is bullish about Strategy’s prospects, citing Bitcoin’s potential to appreciate due to multiple tailwinds.

Retail sentiment on Stocktwits pointed to caution among users, hovering in the ‘bearish’ (44/100) territory, while message volume was in the ‘normal’ zone.

Meanwhile, one user quipped that their put positions are in the green.

Strategy’s stock price has more than doubled over the past six months, while its one-year returns stand at a whopping 591%.

Bitcoin has gained a little over 78% in the past six months, while its one-year performance stands at gains of 127%.

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

Also See: STMicroelectronics Stock Falls On Bernstein Downgrade, Analysts Say ‘No Clear Bottom In Sight’: Retail Sentiment Declines