MicroStrategy (MSTR) Pivots to Cash Reserves: Technical Analysis of the $167 Support Zone
MicroStrategy (MSTR) had small losses on Monday, with shares dipping 0.34% to $162.26 after Bitcoin moved closer to the $90,000 resistance
Quick overview
- MicroStrategy (MSTR) shares fell 0.34% to $162.26 as Bitcoin approached the $90,000 resistance level.
- The company recently sold 4.535 million shares, raising $747.8 million to increase its cash reserves to $2.19 billion.
- Despite a challenging market, long-term investors in MSTR have seen significant returns, with a 406% increase over five years.
- MicroStrategy's strategy shift from aggressive Bitcoin purchases to building cash reserves reflects broader challenges faced by companies in the Bitcoin treasury sector.
MicroStrategy (MSTR) had small losses on Monday, with shares dipping 0.34% to $162.26 after Bitcoin BTC/USD moved closer to the $90,000 resistance mark. The move shows that the software company’s stock performance is still closely linked to the cryptocurrency market, even though the company is changing how it manages its treasury.
The rise happened when Bitcoin was trading close to $88,000 and hit $89,893 before hitting a wall. The digital asset has been going up after weeks of ups and downs, but it is still down about 4.4% over the past year, which has had a big effect on MicroStrategy’s value.
MSTR’s Strategic Pivot to Cash Reserves
MicroStrategy sold 4.535 million shares of Class A common stock this week, bringing in $747.8 million in net proceeds. This was a big change from its aggressive strategy of buying up Bitcoin. The company’s at-the-market offering program sold the items between December 15 and 21. This raised the company’s cash reserves to $2.19 billion, and Bitcoin purchases were put on hold for a short time.
According to Executive Chairman Michael Saylor, the corporation still owns 671,268 BTC, which it bought for a total of $50.33 billion at an average price of $74,972 per coin. MicroStrategy bought 10,645 BTC for $980.3 million on December 15. The average price was $92,098.
The company’s new USD reserve, which was set at $1.44 billion in early December, is supported by the buildup of cash reserves. As per regulatory filings, MicroStrategy wants to keep enough cash on hand to pay at least twelve months’ worth of preferred stock dividends and interest, with the goal of eventually covering 24 months or more.
MicroStrategy (MSTR) Stock Technical Picture Remains Challenging
MicroStrategy’s chart shows a big drop in quality from a technical point of view. Shares have dropped 44.1% this year and are now 63.2% below their 52-week high of $455.90, which was hit in July 2025. The stock has been very volatile over the past year, with 59 swings of more than 5%, which shows that it is a speculative investment.
Long-term holders still have big returns, even though the market has been poor lately. Five years ago, investors who bought $1,000 worth of MSTR would now have about $5,059, which is a 406% return even though the stock market is down right now.
The stock’s 10-for-1 split in August 2024 was meant to make it easier to buy and sell, but it hasn’t done anything to stabilize the price. The company’s third-quarter 2025 results revealed operating income of $3.9 billion and net income of $2.8 billion. The diluted EPS was $8.42. These numbers were mostly affected by mark-to-market adjustments connected to Bitcoin, not by the company’s core software operations.
Strategy’s Broader Bitcoin Treasury Model Under Pressure
The problems that MicroStrategy is having are similar to those that other companies in the Bitcoin treasury sector are having. Shares in Metaplanet, the fourth-largest corporate Bitcoin holder, have lost 75% in six months, and shares in MARA Holdings dropped almost 38% in 2025. The idea of companies buying Bitcoin, which was popular during the 2024 boom, is having a hard time in the present market.
As Bitcoin settles around $89,000, traders will be watching to see if MicroStrategy starts buying again or keeps building up cash reserves. This choice could have a big effect on both the company’s leverage profile and the direction of its stock price.
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