MSTR Stock Breaks Support Despite Strong Strategy Fundamentals, $7B BTC Holdings
Even if the stock is struggling due to selling pressure, MicroStrategy's recent performance and Bitcoin accumulation plan are once again...
Quick overview
- MicroStrategy has acquired an additional 4,000 BTC, bringing its total holdings to over 636,500 BTC valued at approximately $70.6 billion.
- The company's Q2 2025 earnings report revealed a net income of $10.02 billion, significantly exceeding Wall Street estimates.
- Speculation about MicroStrategy's potential inclusion in the S&P 500 has increased investor interest, despite the stock facing a two-month downtrend.
- Institutional backing, including a $133 million stake from CalSTRS, indicates growing acceptance of MicroStrategy as a vehicle for indirect crypto exposure.
Even if the stock is struggling due to selling pressure, MicroStrategy’s recent performance and Bitcoin accumulation plan are once again in the news, sparking talk about its possible admission into the S&P 500.
Bitcoin Treasury Expansion Continues
Despite recent price weakness, MicroStrategy doubled down on its accumulation strategy. The company acquired another 4,000 BTC for $450 million, bringing its total to more than 636,500 BTC valued at roughly $70.6 billion. Purchases were financed through $46.5 million in preferred shares and $425 million in common stock offerings, showing management’s willingness to lean on equity markets to fund its crypto ambitions.
Even in August, additional purchases of over 3,000 BTC—worth $357 million—highlighted Saylor’s intent to buy through volatility. By now, MicroStrategy holds more Bitcoin than any other publicly traded company, cementing its role as the de facto corporate Bitcoin ETF.
Earnings Power Surprises Wall Street
MicroStrategy’s Q2 2025 earnings report was a seismic moment. Net income surged to $10.02 billion, with earnings per share hitting $32.60—an eye-popping 46,000% above estimates. Revenue also surprised, reaching $114.5 million, while GAAP operating income soared over 7,100% year-on-year to $14 billion. The driver was clear: the company’s massive Bitcoin holdings, which reached new all-time highs during the quarter.
Executive Chairman Michael Saylor used the occasion to unveil a novel funding tool, the Perpetual Stretch Preferred Stock (STRC). Backed by Bitcoin reserves and designed to provide high-yield dividends, STRC raised $2.5 billion almost immediately out of a planned $4.2 billion package—underscoring investor appetite and strengthening the company’s financial arsenal.
S&P 500 Speculation Lifts Sentiment
Investor chatter intensified this week after analyst Lark Davis suggested MicroStrategy could be close to joining the S&P 500 index. Such an inclusion would spark automatic buying from index-tracking funds, boosting trading volumes and potentially driving MSTR shares higher. It would also mark a watershed moment for the intersection of crypto and traditional equity markets. Reports suggest a decision could come as early as Friday, keeping investors on edge.
Stock Performance Under Pressure
Despite bullish speculation, MSTR stock has been on a two-month downtrend. After peaking above $457 in July, the price has fallen nearly 30%, breaking below $320 this week and slipping under its 50-week SMA. This opens the door for a retest of April lows near the 100 SMA. The decline mirrors Bitcoin’s recent weakness, reinforcing how closely tied MicroStrategy’s stock remains to BTC’s swings.
MSTR Chart Weekly – The 20 SMA Holding As Support
Growing Institutional Endorsement
Institutional investors are increasingly backing Saylor’s strategy. The California State Teachers’ Retirement System (CalSTRS)—the U.S.’s third-largest pension fund—recently disclosed a $133 million stake in MSTR. This endorsement, coupled with ongoing Bitcoin accumulation, signals that MicroStrategy is becoming a more accepted vehicle for large funds seeking indirect crypto exposure.
Outlook: High Risk, High Reward
MicroStrategy is no longer just an enterprise software company—it is a financial heavyweight built on Bitcoin. Record earnings, innovative financing models, and institutional adoption highlight its transformation. Yet risks remain steep: MSTR’s fate is tethered to Bitcoin’s volatility, regulatory scrutiny, and the company’s ability to sustain investor confidence.
Should S&P 500 inclusion materialize, it could unlock the next major wave of demand. But for now, MicroStrategy remains a high-beta proxy for Bitcoin—offering outsized upside in rallies, and equally sharp pain during corrections.
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