Investors Step In on Oversold MSTR Stock Amid BTC Weakness, Target $700
MicroStrategy’s attempt at stabilizing last week was short-lived, as continued weakness in Bitcoin and the broader crypto complex sent the..
Quick overview
- MicroStrategy's stock fell nearly 9% at the start of the week due to a renewed decline in Bitcoin and the broader crypto market.
- Despite the recent downturn, analysts maintain a bullish outlook on MicroStrategy, with a price target of $705 suggesting significant upside potential.
- The company continues to advocate for its Bitcoin-centric mission, although leadership has acknowledged the possibility of selling Bitcoin under extreme conditions.
- MicroStrategy's substantial Bitcoin holdings and impressive earnings underscore its valuation, with the company holding 650,000 BTC worth approximately $51 billion.
MicroStrategy’s attempt at stabilizing last week was short-lived, as continued weakness in Bitcoin and the broader crypto complex sent the stock substantially lower to start the week.
MicroStrategy Stumbles Again As Crypto Markets Retreat
MicroStrategy (NASDAQ: MSTR) had finally shown signs of stabilizing late last week after a bruising four-month selloff, but Monday’s renewed turbulence in the crypto market swiftly erased that momentum. Bitcoin’s sudden 10% slide and the broader decline across digital assets sent MSTR tumbling nearly 9% at the opening bell, once again reminding markets just how tightly the company’s share price is tethered to the direction of Bitcoin.
After plunging from peaks of $457 earlier this year, MicroStrategy has spent months in a steady downward trend—losing roughly 65% of its value as Bitcoin tested the $85,000 area. Friday’s modest rebound appeared to signal that buyers were finally stepping back in, but this week began with the same aggressive selling that defined much of the recent correction.
Bitcoin-Driven Declines Continue To Dictate MSTR’s Trajectory
The latest downturn reflects a familiar dynamic: MicroStrategy’s share price has effectively become a leveraged expression of Bitcoin sentiment. The stock opened Monday with a pronounced gap lower at $168, and selling pressure showed little sign of easing throughout the session. Each major swing in Bitcoin has been mirrored—often amplified—in MSTR’s daily performance, reaffirming that traditional equity fundamentals remain secondary to digital asset price action.
Still, technical structure shows that MicroStrategy is approaching a major long-term level. Shares now sit directly on the 50-month simple moving average, a line that has historically held during deep cyclical pullbacks. An oversold reading on longer-term charts suggests that if Bitcoin stabilizes, MSTR could find room for a short-term rebound. Immediate support levels lie at $150 and then deeper at $130.
Analysts Maintain A Strong Bullish Stance
Despite this steep drawdown, not all analysts are turning bearish. Benchmark recently reiterated its Buy rating on MicroStrategy with a standout price target of $705, implying a staggering 350% upside from current levels. The broader analyst consensus also remains firmly in bullish territory, with sentiment sitting at 1.43 (Strong Buy).
Analysts argue that MicroStrategy’s steep correction—down around 60% from its July peak—has pushed the stock into technically oversold territory. According to their assessments, Bitcoin’s pullback has had an outsized impact on MSTR relative to the company’s actual long-term fundamentals.
JPMorgan Controversy Sparks Industry Backlash
MicroStrategy’s decline has also intersected with a new layer of controversy involving JPMorgan. The bank recently suggested that removing MicroStrategy from the MSCI indices could trigger forced outflows of up to $2.8 billion, potentially ballooning to $8.8 billion if other index providers follow suit.
This projection ignited outrage within the crypto community. Real estate investor Grant Cardone joined several prominent voices calling for a boycott of JPMorgan. Critics accuse the bank of intentionally targeting MicroStrategy shareholders—and by extension, the Bitcoin ecosystem. These accusations come at a time when JPMorgan continues to face renewed scrutiny for its historical ties to Jeffrey Epstein, further complicating public perception.
Leadership Reinforces Commitment To The Bitcoin Standard
Through all the volatility, Executive Chairman Michael Saylor has remained the most outspoken advocate of the company’s Bitcoin-centric mission. In a recent CNBC appearance, he reiterated that MicroStrategy has continued acquiring substantial amounts of Bitcoin and maintains a conviction that BTC will outperform traditional asset classes such as gold and the S&P 500 over time.
However, in a rare shift in messaging, MicroStrategy leadership acknowledged for the first time that selling Bitcoin could occur under extreme stress scenarios. CEO Phong Le explained on the What Bitcoin Did podcast that a sale would only be considered if two conditions were met:
- MicroStrategy’s stock traded below the value of its Bitcoin holdings (1x mNAV), and
- The company was unable to raise capital through debt or equity markets.
While the conditions are unlikely, the admission marks a notable evolution in the company’s longstanding “never sell” stance.
Capital Strategy Expansion And Institutional Participation
In November, Strategy Inc.—a MicroStrategy affiliate—issued 3.5 million euro-denominated Series A Perpetual Stream Preferred Shares, offering a 10% annual dividend exclusively to institutional investors within the EEA and the U.K. The capital raised is expected to support further Bitcoin acquisitions and broader corporate initiatives.
Institutional players have been steadily increasing exposure as well. CalSTRS, one of the largest U.S. pension funds, recently disclosed a $133 million stake in MSTR—an endorsement that underscores growing acceptance of MicroStrategy’s Bitcoin-based operating model.
Massive Bitcoin Holdings And Explosive Earnings Reinforce Scale
MicroStrategy now holds 650,000 BTC, worth approximately $51 billion, purchased at an average price of $74,433. This immense treasury remains the cornerstone of the company’s valuation.
The company’s second-quarter 2025 results underline the scale of its transformation:
- Net income: $10.02 billion
- EPS: $32.60
- Revenue: $114.5 million
- Operating income growth: 7,100% year-over-year
A significant contribution came from the rollout of the Perpetual Stretch Preferred Stock (STRC)—a Bitcoin-backed instrument offering yield exposure to institutional buyers.
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