Reasons Behind MSTR's Decline Exceeding the Broader Market Today
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 12 2025
0mins
Should l Buy MSTR?
Source: NASDAQ.COM
Stock Performance: Strategy (MSTR) closed at $176.50, down 3.71% in the latest trading session, underperforming compared to the S&P 500 and other major indices, with a 12.1% decline over the past month.
Earnings Expectations: Analysts anticipate Strategy will report earnings of $46.02 per share, reflecting a significant year-over-year growth of 1538.13%, alongside a revenue estimate of $119.6 million, slightly down from the previous year.
Zacks Rank and Valuation: Strategy holds a Zacks Rank of #3 (Hold) with a Forward P/E ratio of 2.35, indicating it is trading at a discount compared to its industry average of 12.42.
Investment Insights: Zacks Investment Research highlights the importance of analyst estimate revisions for stock performance, and suggests that their proprietary Zacks Rank system has a strong track record of predicting stock returns, with top-rated stocks averaging a 25% annual return since 1988.
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Analyst Views on MSTR
Wall Street analysts forecast MSTR stock price to rise
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 123.000
Low
229.00
Averages
453.17
High
705.00
Current: 123.000
Low
229.00
Averages
453.17
High
705.00
About MSTR
Strategy Inc., formerly MicroStrategy Incorporated, is a bitcoin treasury and business intelligence company. The Company provides cloud-native, artificial intelligence (AI)-powered enterprise analytics software to thousands of global customers. The Company’s Strategy ONE platform provides access to AI-powered workflows, unlimited data sources, cloud-native technologies, and performance to speed up time from data to action. Strategy One delivers visualization, reporting, and embedded analytics capabilities across retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. Its Strategy Mosaic is a universal intelligence layer that provides enterprises with consistent definitions and governance across data sources, regardless of where that data resides or which tools access it. The Strategy Mosaic offers data clarity and connection by eliminating trade-offs between flexibility, control, and speed.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Strategy Inc. Plans to Convert Convertible Debt to Equity
- Debt-to-Equity Conversion: Founder Michael Saylor announced that Strategy Inc. plans to convert its convertible debt into equity over the next three to six years, reflecting confidence in future market conditions.
- Strong Balance Sheet: Even if Bitcoin's price drops to $8,000, Strategy Inc. maintains $49 billion in Bitcoin reserves, sufficient to cover $6 billion in net debt, showcasing robust financial resilience.
- Debt Management Strategy: The company has accumulated over $8.2 billion in debt primarily through convertible senior notes for Bitcoin acquisitions, with no major maturities until 2028, indicating a solid debt management approach.
- Market Reaction: Despite MSTR shares rising 8.85% to $133.88 during Friday's trading, market confidence in its future performance remains weak, with low momentum rankings indicating potential challenges ahead.
See More
Cryptocurrency Market Faces Pressure as Stock Futures Rise
- Cryptocurrency Market Decline: Bitcoin slid into the $68,000 region with an 11% increase in trading volume over the past 24 hours, yet the market continues to face selling pressure, indicating a bearish sentiment among investors.
- Ethereum Trading Surge: Ethereum fell below $2,000 amid an 80% spike in 24-hour trading volume, reflecting strong selling pressure that could impact its short-term price trajectory.
- Market Liquidation Overview: Approximately $325 million was liquidated from the market in the last 24 hours, with $240 million in bullish long positions wiped out, highlighting investor sensitivity to market volatility.
- Stock Futures Rise: Dow Jones Industrial Average futures rose by 37 points, or 0.07%, as consumer inflation eased to an 8-month low, suggesting a more optimistic outlook for the economy moving forward.
See More
Crypto Treasuries Under Pressure as Market Cap Falls Over 30%
- Market Value Decline: The total market cap of cryptocurrencies has fallen over 30% in the past three months, significantly pressuring treasury firms that rely on crypto assets, potentially forcing them to sell holdings to service debts, thereby exacerbating the market downturn.
- Financial Strain Intensifies: Mara Holdings has a market cap of $3.05 billion against Bitcoin assets worth $3.69 billion, indicating financial vulnerability as it faces pressure to sell Bitcoin, highlighting the precarious nature of its financial situation.
- Severe Unrealized Losses: BitMine Immersion Technologies is sitting on approximately $7.5 billion in unrealized paper losses, and despite raising funds through PIPE deals, its stock has plummeted nearly 60% in the past six months, underscoring its fragility in the current market environment.
- Rising ETF Appeal: With the approval of cryptocurrency ETFs, investors may increasingly prefer these passive investment vehicles over higher-risk crypto treasuries, potentially leading to capital outflows and a decline in market share for the latter.
See More
Crypto Market Cap Drops 30%, Impacting Treasury Firms
- Market Value Plunge: The crypto market cap has fallen over 30% in the last three months, creating significant pressure on treasury firms that rely on crypto assets, with many potentially needing to sell their holdings to service debt, exacerbating the market downturn.
- Financial Strain Intensifies: For instance, Mara Holdings has a market cap of $3.05 billion while its Bitcoin assets are valued at $3.69 billion, yet the company may face pressure to sell Bitcoin, reflecting the vulnerability of crypto treasury firms.
- Severe Unrealized Losses: BitMine Immersion Technologies is sitting on approximately $7.5 billion in unrealized losses, and despite raising funds through PIPE deals, its stock has plummeted nearly 60% in the past six months, indicating market concerns about its future.
- Increased ETF Pressure: With the introduction of crypto ETFs, digital asset treasury firms face heightened competitive pressure, especially as ETFs offer yield and liquidity advantages, potentially leading investors to shift towards safer investment options, thereby impacting the entire crypto ecosystem.
See More
Bitcoin Treasury Companies Face Challenges Amid Price Drop
- Bitcoin Holdings: As of early February, Strategy held 713,502 bitcoins valued at approximately $50 billion, showcasing its significant influence in the Bitcoin market; however, with a 45% drop in Bitcoin prices, the value of its assets is under pressure.
- Financial Losses: Strategy reported a staggering $12.4 billion loss in Q4 2025 primarily due to impairment on its Bitcoin holdings, complicating the company's operations in the current market environment.
- Stock Price Decline: The stock price of Strategy has plummeted about 60% over the past 12 months, recently hitting an 18-month low of $104, which restricts the company's ability to finance Bitcoin purchases through stock issuance.
- Investment Advice: Given the current market conditions, analysts recommend that investors buy Bitcoin directly rather than holding Strategy stock, as its market cap of $40 billion is now less than the value of its Bitcoin holdings at $50 billion.
See More
Analysis of Strategy's Bitcoin Investment Status
- Bitcoin Holdings: Strategy has accumulated 714,644 bitcoins over the past five years, valued at approximately $50 billion, but with a cost basis of $76,056 each, the current price below $70,000 puts significant pressure on its balance sheet.
- Financial Losses: In Q4 2025, Strategy reported a staggering $12.4 billion loss primarily due to impairment on its Bitcoin holdings, leading to a 60% decline in its stock price over the past 12 months, recently hitting an 18-month low of $104.
- Market Competition: With Bitcoin's price dropping 45% in the last four months, investors are now more inclined to buy Bitcoin directly rather than through treasury companies, further dimming Strategy's market outlook.
- Investment Advice: Analysts recommend viewing Strategy's stock as a sell until Bitcoin prices recover significantly, noting that it was not included in Motley Fool's list of top stocks, indicating a decline in its investment appeal.
See More
Strategy Inc. Plans to Convert Convertible Debt to Equity
- Debt-to-Equity Conversion: Founder Michael Saylor announced that Strategy Inc. plans to convert its convertible debt into equity over the next three to six years, reflecting confidence in future market conditions.
- Strong Balance Sheet: Even if Bitcoin's price drops to $8,000, Strategy Inc. maintains $49 billion in Bitcoin reserves, sufficient to cover $6 billion in net debt, showcasing robust financial resilience.
- Debt Management Strategy: The company has accumulated over $8.2 billion in debt primarily through convertible senior notes for Bitcoin acquisitions, with no major maturities until 2028, indicating a solid debt management approach.
- Market Reaction: Despite MSTR shares rising 8.85% to $133.88 during Friday's trading, market confidence in its future performance remains weak, with low momentum rankings indicating potential challenges ahead.
See More
Cryptocurrency Market Faces Pressure as Stock Futures Rise
- Cryptocurrency Market Decline: Bitcoin slid into the $68,000 region with an 11% increase in trading volume over the past 24 hours, yet the market continues to face selling pressure, indicating a bearish sentiment among investors.
- Ethereum Trading Surge: Ethereum fell below $2,000 amid an 80% spike in 24-hour trading volume, reflecting strong selling pressure that could impact its short-term price trajectory.
- Market Liquidation Overview: Approximately $325 million was liquidated from the market in the last 24 hours, with $240 million in bullish long positions wiped out, highlighting investor sensitivity to market volatility.
- Stock Futures Rise: Dow Jones Industrial Average futures rose by 37 points, or 0.07%, as consumer inflation eased to an 8-month low, suggesting a more optimistic outlook for the economy moving forward.
See More
Crypto Treasuries Under Pressure as Market Cap Falls Over 30%
- Market Value Decline: The total market cap of cryptocurrencies has fallen over 30% in the past three months, significantly pressuring treasury firms that rely on crypto assets, potentially forcing them to sell holdings to service debts, thereby exacerbating the market downturn.
- Financial Strain Intensifies: Mara Holdings has a market cap of $3.05 billion against Bitcoin assets worth $3.69 billion, indicating financial vulnerability as it faces pressure to sell Bitcoin, highlighting the precarious nature of its financial situation.
- Severe Unrealized Losses: BitMine Immersion Technologies is sitting on approximately $7.5 billion in unrealized paper losses, and despite raising funds through PIPE deals, its stock has plummeted nearly 60% in the past six months, underscoring its fragility in the current market environment.
- Rising ETF Appeal: With the approval of cryptocurrency ETFs, investors may increasingly prefer these passive investment vehicles over higher-risk crypto treasuries, potentially leading to capital outflows and a decline in market share for the latter.
See More
Crypto Market Cap Drops 30%, Impacting Treasury Firms
- Market Value Plunge: The crypto market cap has fallen over 30% in the last three months, creating significant pressure on treasury firms that rely on crypto assets, with many potentially needing to sell their holdings to service debt, exacerbating the market downturn.
- Financial Strain Intensifies: For instance, Mara Holdings has a market cap of $3.05 billion while its Bitcoin assets are valued at $3.69 billion, yet the company may face pressure to sell Bitcoin, reflecting the vulnerability of crypto treasury firms.
- Severe Unrealized Losses: BitMine Immersion Technologies is sitting on approximately $7.5 billion in unrealized losses, and despite raising funds through PIPE deals, its stock has plummeted nearly 60% in the past six months, indicating market concerns about its future.
- Increased ETF Pressure: With the introduction of crypto ETFs, digital asset treasury firms face heightened competitive pressure, especially as ETFs offer yield and liquidity advantages, potentially leading investors to shift towards safer investment options, thereby impacting the entire crypto ecosystem.
See More
Bitcoin Treasury Companies Face Challenges Amid Price Drop
- Bitcoin Holdings: As of early February, Strategy held 713,502 bitcoins valued at approximately $50 billion, showcasing its significant influence in the Bitcoin market; however, with a 45% drop in Bitcoin prices, the value of its assets is under pressure.
- Financial Losses: Strategy reported a staggering $12.4 billion loss in Q4 2025 primarily due to impairment on its Bitcoin holdings, complicating the company's operations in the current market environment.
- Stock Price Decline: The stock price of Strategy has plummeted about 60% over the past 12 months, recently hitting an 18-month low of $104, which restricts the company's ability to finance Bitcoin purchases through stock issuance.
- Investment Advice: Given the current market conditions, analysts recommend that investors buy Bitcoin directly rather than holding Strategy stock, as its market cap of $40 billion is now less than the value of its Bitcoin holdings at $50 billion.
See More
Analysis of Strategy's Bitcoin Investment Status
- Bitcoin Holdings: Strategy has accumulated 714,644 bitcoins over the past five years, valued at approximately $50 billion, but with a cost basis of $76,056 each, the current price below $70,000 puts significant pressure on its balance sheet.
- Financial Losses: In Q4 2025, Strategy reported a staggering $12.4 billion loss primarily due to impairment on its Bitcoin holdings, leading to a 60% decline in its stock price over the past 12 months, recently hitting an 18-month low of $104.
- Market Competition: With Bitcoin's price dropping 45% in the last four months, investors are now more inclined to buy Bitcoin directly rather than through treasury companies, further dimming Strategy's market outlook.
- Investment Advice: Analysts recommend viewing Strategy's stock as a sell until Bitcoin prices recover significantly, noting that it was not included in Motley Fool's list of top stocks, indicating a decline in its investment appeal.
See More
