MSTR Stock Finds Support After the Jump in Bitcoin Price Today – Buy Now on Earnings Beat?
After six months of relentless selling, MicroStrategy is showing early signs of stabilisation as Bitcoin recovers, though the stock remains
Quick overview
- MicroStrategy's stock shows signs of stabilization after a severe downtrend, finding support near the $100 level.
- The company's recent earnings report beat expectations, but substantial losses highlight its dependence on Bitcoin exposure.
- MicroStrategy raised $1.25 billion to purchase additional Bitcoin, reinforcing its position as the largest corporate holder of the asset.
- Analysts remain optimistic about MicroStrategy's long-term prospects, despite the risks associated with Bitcoin's volatility.
Live BTC/USD Chart
After six months of relentless selling, MicroStrategy is showing early signs of stabilisation as Bitcoin recovers, though the stock remains firmly in high-risk territory.
A Tentative Base After a Punishing Downtrend
MicroStrategy shares appear to have found at least temporary support near the psychologically important $100 level following one of the most severe drawdowns in the stock’s history. After nearly six consecutive months of selling pressure, MSTR finally showed signs of life on Friday, rebounding sharply from intraday lows and closing the week little changed after its latest earnings report.
The stock briefly traded close to $100 before staging a powerful bounce of roughly 25% from the lows. While MSTR is still modestly lower on the week, the violent reversal suggests that forced selling may have run its course—at least in the near term. Volatility remains elevated, but the balance between buyers and sellers appears to be shifting as broader crypto sentiment improves.
Earnings Beat Helps Steady the Narrative
Strategy’s latest earnings report provided some stability at a critical moment. The company posted revenues of $122.99 million for the quarter ended December 2025, beating the Zacks Consensus Estimate by 2.83% and improving slightly from year-ago revenues of $120.7 million. Importantly, this marked the third revenue beat in the last four quarters, reinforcing the view that the underlying software business remains resilient despite market turbulence.
However, losses remain substantial. Strategy reported an adjusted quarterly loss of $42.93 per share, compared with the Zacks estimate of a $46.02 loss. While narrower than expected, the result still represented a dramatic deterioration from the $3.2 per share loss recorded a year earlier. The figures underscore how much of the company’s financial profile is now dominated by its Bitcoin exposure rather than its legacy analytics business.
Fresh Bitcoin Buying Rekindles Investor Interest
The most decisive catalyst for the rebound came not from earnings, but from capital deployment. MicroStrategy disclosed a $1.25 billion capital raise, consisting of approximately 6.83 million common shares and 1.19 million preferred STRC shares. Management wasted little time deploying the proceeds into additional Bitcoin purchases.
The company acquired 13,627 Bitcoin, lifting total holdings to roughly 713,502 BTC at an average cost of about $76,000 per coin. At current prices, that hoard is valued at approximately $50.2 billion, further cementing MicroStrategy’s position as the world’s largest corporate holder of Bitcoin.
For supporters, the move reinforced management’s conviction and long-term vision. For critics, it highlighted the company’s increasing dependence on Bitcoin price action to justify its equity valuation.
Bitcoin’s Recovery Drives the Equity Rebound
MicroStrategy’s share price remains tightly correlated with Bitcoin, effectively making MSTR a leveraged proxy for the digital asset. After a sharp sell-off in recent weeks, Bitcoin found support near the 200-week simple moving average and stabilised around the $60,000 level. The subsequent push back above $70,000 provided the spark for renewed buying in crypto-linked equities.
As Bitcoin regained momentum, MicroStrategy followed almost mechanically. The relationship remains both a strength and a risk. When Bitcoin rallies, MSTR tends to outperform. When Bitcoin weakens, the downside is often amplified.
Technical Picture Shows Early Signs of Stabilisation
From a technical perspective, MicroStrategy’s recent price action suggests a potential exhaustion of selling pressure. The sharp dip to $100 appeared to flush out remaining weak hands, triggering aggressive dip-buying and a swift rebound.
MSTR Chart Weekly – Rebounding Off the 200 SMA
The stock had been clinging to its 100-week simple moving average since late November, but that level finally gave way during this week’s sell-off. Crucially, however, buyers stepped in near the 200-week moving average, forming a new support zone and setting the stage for a possible recovery.
While this does not confirm a durable trend change, it does improve the near-term technical backdrop—particularly if Bitcoin continues to stabilise or extend its rebound.
Analyst Optimism Persists Despite Heavy Damage
Despite the scale of the drawdown, analyst sentiment remains notably constructive. Benchmark recently reiterated a Buy rating on MicroStrategy with a $705 price target, implying substantial upside from current levels.
The bullish case rests on two pillars: the belief that MSTR’s roughly 60% correction from its summer highs left the stock deeply oversold, and the expectation that Bitcoin’s long-term trajectory remains upward. With crypto markets showing signs of renewed institutional interest, some analysts see the recent lows as a potential inflection point rather than the start of a prolonged decline.
Management Reaffirms Its Long-Term Bitcoin Thesis
Executive Chairman Michael Saylor continues to frame MicroStrategy as a long-duration Bitcoin investment vehicle, repeatedly emphasising a time horizon measured in decades rather than quarters. That message has remained consistent even through the recent drawdown.
In a subtle shift, CEO Phong Le recently acknowledged that Bitcoin sales could theoretically occur under extreme circumstances—specifically if the company’s share price fell below the value of its Bitcoin holdings and access to capital markets was lost. While described as highly unlikely, the admission marked a rare acknowledgement of downside contingencies.
Le later reinforced the broader stance, stating that MicroStrategy has no intention of selling its Bitcoin holdings before at least 2065.
Institutional Support Adds Credibility, Not Certainty
MicroStrategy has continued to innovate on the capital side to fund its Bitcoin strategy. In November, the company issued euro-denominated Series A Perpetual Stream Preferred Shares offering a 10% yield to institutional investors in Europe and the UK.
Institutional interest appears to be growing. CalSTRS, one of the largest U.S. pension funds, recently disclosed a $133 million stake in the company—an endorsement that adds credibility to MicroStrategy’s unconventional balance-sheet approach.
Still, the path forward remains highly dependent on Bitcoin. While the recent rebound has eased pressure, MicroStrategy’s stabilisation is best viewed cautiously. As long as volatility in digital assets persists, certainty will remain elusive.
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