icon
icon
icon
icon
$300 Off
$300 Off

News /

Articles /

MicroStrategy Halts Bitcoin Buying Spree Ahead of Q4 Loss

Coin WorldTuesday, Feb 4, 2025 6:09 am ET
1min read

MicroStrategy, the leading corporate holder of Bitcoin, has halted its Bitcoin buying streak, sparking speculation among investors and analysts. The company, which has seen its stock price surge by 594% over the past year due to a Bitcoin-led rally, is expected to report a loss per share of $0.09 for Q4 2024, compared to an EPS of $0.50 in the prior-year quarter.

Analysts anticipate that MicroStrategy's Q4 bottom line will be impacted by higher operating expenses and weakness in its software revenue. Despite this, investors are likely to focus more on the company's Bitcoin strategy, as it has been the primary driver of MSTR's stock price. MicroStrategy has been using proceeds from debt and equity issuance to buy Bitcoin and boost its Bitcoin yield (Bitcoin holdings per share). The company is expected to benefit from the increasing adoption of Bitcoin and favorable crypto regulations under the Trump administration.

In the lead-up to MicroStrategy's Q4 results, analysts have offered their views on the company's stock. Mizuho analyst Dan Dolev initiated coverage of MSTR stock with a Buy rating and a price target of $515. Dolev noted that the stock is trading at a premium due to expectations that the company would continue to buy Bitcoin, and the price of Bitcoin would continue to appreciate. Similarly, Compass Point analyst Ed Engel initiated coverage of MicroStrategy stock with a Buy rating and a price target of $550. Engel highlighted that MSTR stock offers Bitcoin exposure to equity investors by steadily increasing its Bitcoin yield.

Options traders are anticipating a major move on MSTR's Q4 earnings, with an expected 8.7% move in either direction in reaction to the results. This suggests that investors are positioning themselves for significant volatility around the earnings announcement.

Wall Street analysts are highly bullish on MicroStrategy stock, with a Strong Buy consensus rating based on nine unanimous Buys. The average MSTR stock price target of $557.50 implies about 61% upside potential from current levels.

Comments

Add a public comment...
Post
User avatar and name identifying the post author
OutsidePerspective27
02/04
$MSTR Come on Micro crash it
0
Reply
User avatar and name identifying the post author
foo-bar-nlogn-100
02/04
@A2099 also at 101.6k, not bad. Thought they'd buy at 105/106, that's why the release took so long. Crazy if they bought yesterday for 93-97k. Premium now is 50%, really low, even $MSTR is at 80%. Stock should bounce back to 60+ soon.
0
Reply
User avatar and name identifying the post author
Beetlejuice_hero
02/04
@foo-bar-nlogn-100 Agreed, premium's low.
0
Reply
User avatar and name identifying the post author
Anklebreakers10
02/04
@foo-bar-nlogn-100 Think MSTR can hit $600?
0
Reply
User avatar and name identifying the post author
hey_its_meeee
02/04
$MSTR down 1.2% pre-market MicroStrategy stops buying Bitcoin, holds around 500,000 Bitcoin - The Street https://ooc.bz/l/54951
0
Reply
User avatar and name identifying the post author
Argothaught
02/04
MSTR's software revenue feels shaky, but Bitcoin's potential outweighs it. Holding long-term, riding the crypto wave.
0
Reply
User avatar and name identifying the post author
02/04
@Argothaught

MSTR is practicing same strategy with those bonds as the banks in the 20'20's did. House of cards

0
Reply
User avatar and name identifying the post author
wodentx
02/04
@ True, feels like a bubble.
0
Reply
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App