MicroStrategy MSTR Stock Rebounds After Finding Support, Backed by CalSTRS
Bitcoin fluctuations and new funding regulations have caused MicroStrategy's stock to fluctuate, but the company's most recent results...

Quick overview
- MicroStrategy's stock has faced volatility due to Bitcoin price corrections and changes in funding policies, recently dropping to its lowest level since April.
- Despite these challenges, the company reported a historic earnings surprise with a net income of $10.02 billion, driven by its substantial Bitcoin reserves.
- Executive Chairman Michael Saylor introduced a new financing tool, the Perpetual Stretch Preferred Stock, signaling a shift towards a Bitcoin-focused financial strategy.
- Institutional support is growing, highlighted by a $133 million investment from CalSTRS, as MicroStrategy continues to adapt its funding approach to facilitate further Bitcoin acquisitions.
Bitcoin fluctuations and new funding regulations have caused MicroStrategy’s stock to fluctuate, but the company’s most recent results and institutional support a helping in a MSTR resurgence.
Stock Slide Amid Bitcoin Correction
After peaking above $540 last November, MicroStrategy (NASDAQ: MSTR) has struggled to maintain momentum. The stock has been under steady pressure since mid-July, dropping around 9% this week and hitting $326 on Wednesday, its lowest level since April. Two catalysts drove the decline: a new correction in Bitcoin prices and a controversial decision by management to relax equity issuance rules in order to continue accumulating Bitcoin.
MSTR Chart Weekly – The 50 SMA Held As Support Again
Despite these headwinds, the stock recently bounced from its 50-week simple moving average, where the stochastic indicator signaled oversold conditions. This technical backdrop suggests that a bullish reversal could be forming, allowing the broader uptrend to resume.
Historic Earnings Surprise
MicroStrategy’s second-quarter 2025 earnings shocked the market. The company reported a net income of $10.02 billion and earnings per share of $32.60 — a staggering 46,000% upside surprise relative to Wall Street forecasts. Revenue of $114.5 million surpassed expectations, while GAAP operating income surged to $14 billion, representing a 7,100% year-over-year increase. The primary driver behind these results was the company’s massive Bitcoin reserves, which climbed to record highs during the quarter.
Bitcoin-Centric Strategy and New Financial Innovation
Building on this momentum, Executive Chairman Michael Saylor unveiled a new financing tool: the Perpetual Stretch Preferred Stock (STRC). He described it as the company’s “iPhone moment,” representing a structural shift in how MicroStrategy taps markets. Backed by Bitcoin holdings, the STRC instrument offers high-yield dividends for income-focused investors. Out of a $4.2 billion at-the-market program, $2.5 billion has already been raised, underscoring strong demand. This move signals MicroStrategy’s deeper pivot away from its traditional software roots toward becoming a Bitcoin-focused financial vehicle.
Institutional Support and Funding Flexibility
Institutional interest in MicroStrategy’s Bitcoin strategy continues to grow. The California State Teachers’ Retirement System (CalSTRS), the third-largest U.S. pension fund, recently invested $133 million in MSTR shares, marking a significant endorsement from a major institutional player. Meanwhile, Saylor loosened key funding rules, allowing the company to issue new shares even when its market-value-to-Bitcoin-holdings ratio (mNAV) falls below 2.5x.
This policy shift is aimed at enabling further Bitcoin purchases regardless of near-term price swings. On August 18, the company added another $51 million in Bitcoin, a smaller acquisition compared with past cycles, but one that reflects a disciplined continuation of its accumulation strategy. With more than 226,000 BTC valued above $13 billion, MicroStrategy remains the largest corporate Bitcoin holder, cementing its position as a high-beta proxy for the cryptocurrency’s performance.
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