MSTR Stock Starts the Awaited Rebound While Strategy Pushes Ahead with BTC Treasury
MicroStrategy’s Bitcoin-focused strategy remains in the spotlight as it faces rejection from the S&P 500 committee but continues to attract
Quick overview
- MicroStrategy's rejection from the S&P 500 has not deterred its stock, which gained 3% following the news and remains above critical support levels.
- The company continues to expand its Bitcoin treasury, recently purchasing an additional 525 BTC, solidifying its position as the largest corporate holder of Bitcoin.
- MicroStrategy's Q2 2025 earnings exceeded expectations, with net income reaching $10.02 billion and a significant launch of a Bitcoin-backed funding vehicle attracting strong investor interest.
- Institutional support is growing, highlighted by CalSTRS' $133 million investment in MicroStrategy, indicating increasing confidence in crypto-linked strategies.
MicroStrategy’s Bitcoin-focused strategy remains in the spotlight as it faces rejection from the S&P 500 committee but continues to attract institutional backing and deliver eye-catching earnings.
S&P 500 Rejection and Market Reaction
MicroStrategy (now rebranded as Strategy) entry into the benchmark index, a setback for advocates of corporate crypto treasuries. Despite the disappointment, MSTR shares were resilient, gaining 3% on Tuesday after finding strong technical support. The stock has lost nearly 30% since peaking at $457 in July but has so far held above the 100-day simple moving average which held as support, a level traders view as critical for potential recovery.
Treasury Expansion for Bitcoin Continues
While share price volatility continues, MicroStrategy has doubled down on its unique treasury strategy. With $73 billion in total assets, the company remains the largest corporate holder of Bitcoin worldwide. A fresh $60 million purchase added 525 BTC to its holdings, bringing the total to 638,985 BTC.
This Bitcoin-centered approach has transformed shareholder returns. Since adopting its Bitcoin standard, MSTR stock has delivered annualized gains of 91%, outpacing even the strongest names in the tech sector.
Earnings Power Stuns Wall Street
The company’s Q2 2025 results surprised even the most optimistic analysts. Net income surged to $10.02 billion, with EPS hitting $32.60—a staggering 46,000% beat versus forecasts. GAAP operating income rose over 7,100% year-over-year to $14 billion, while revenue came in stronger than expected at $114.5 million.
A key highlight was the launch of the Perpetual Stretch Preferred Stock (STRC), a Bitcoin-backed funding vehicle designed to pay high-yield dividends. Within days, it raised $2.5 billion of the targeted $4.2 billion, reflecting strong investor appetite and adding further liquidity to MicroStrategy’s balance sheet.
MSTR Chart Daily – The 100 SMA Holding As Support
Institutional Support Strengthens
Institutional adoption is increasingly aligning with Michael Saylor’s long-term vision. The California State Teachers’ Retirement System (CalSTRS), the third-largest pension fund in the U.S., disclosed a $133 million position in MSTR, signaling confidence in the company as a proxy for Bitcoin exposure. This growing support highlights how traditional investors are gradually warming up to crypto-linked strategies.
Outlook: Balancing Setbacks and Momentum
Despite being left out of the S&P 500, MicroStrategy’s fundamentals and bold treasury approach continue to resonate with investors. Technical support, institutional inflows, and Bitcoin’s resilience suggest the company remains positioned to benefit from the next leg higher in crypto markets. However, its heavy reliance on Bitcoin’s trajectory means volatility will remain a defining feature of its stock.
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