MicroStrategy’s $3.31B Trading Volume Dives 21.6% to 18th Rank Amid Earnings Concerns

On August 12, 2025, Strategy (MSTR) saw a trading volume of $3.31 billion, a 21.59% decline from the previous day, ranking 18th in market activity. The stock closed down 1.46% at $394.26, reflecting subdued investor sentiment.

Recent earnings reports raised concerns about MicroStrategy’s financial health. Despite reporting a $4.73 billion profit, the company generated no free cash flow, burning $12 billion in the past year. A high accrual ratio of 0.52 suggests earnings may be overstated, with profits not aligning with cash generation. Shareholders also face dilution, as the firm issued new shares, increasing outstanding shares by 46% over 12 months. This dilution has reduced individual ownership stakes and diluted EPS growth, compounding risks for long-term returns.

The strategy of purchasing the top 500 stocks by daily trading volume and holding for one day yielded a $2,940 profit from December 2021 to August 2025, with a maximum drawdown of $1,960. The average daily return was 0.24%, and the Sharpe ratio stood at 0.67, indicating moderate risk-adjusted performance over the four-year period.