American Bitcoin Stock Plummets Over 70% Since Launch: Here's Why One Firm Just Rated It as a Buy.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 10 2025
0mins
Should l Buy MSTR?
Source: Barron's
- Investor Reaction: Investors sold their shares of American Bitcoin at the first opportunity, indicating a lack of confidence in the company.
- Market Analysis: Despite the sell-off, one firm has labeled the stock as a "Buy," suggesting potential for recovery or growth.
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Analyst Views on MSTR
Wall Street analysts forecast MSTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSTR is 453.17 USD with a low forecast of 229.00 USD and a high forecast of 705.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 139.630
Low
229.00
Averages
453.17
High
705.00
Current: 139.630
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. Earnings Preview for Q4 2025
- Earnings Expectations: Strategy Inc. is projected to report a loss of $18.64 per share for Q4 2025, a significant increase from a loss of $3.20 per share in the same quarter last year, highlighting the company's vulnerability amid cryptocurrency market fluctuations.
- Revenue Forecast: The expected quarterly revenue of $118.92 million represents a decline from $120.70 million year-over-year, indicating mounting pressure on the company’s market competitiveness and profitability.
- Stock Rating Changes: Despite maintaining a 'Buy' recommendation from 12 analysts, the price target has been drastically reduced from $705 to $480.53, reflecting diminished market confidence in the company's future performance.
- Bitcoin Impact: With 712,647 BTC valued at approximately $54.53 billion, the company's earnings may face substantial hits due to a 23% decline in Bitcoin prices, exacerbating downward pressure on the stock price.
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MicroStrategy Doubles Down on Bitcoin Investment
- Bitcoin Holdings Status: MicroStrategy currently holds 712,647 BTC at an average purchase price of $76,037, with Bitcoin trading around $78,000, resulting in unrealized gains narrowing to less than 3%.
- Dividend Increase Strategy: The company raised the dividend on its Series A Perpetual Stretch Preferred Stock (STRC) by 25 basis points to 11.25%, aiming to attract new capital for future Bitcoin purchases, with this yield significantly exceeding typical corporate bonds, reflecting the company's capital hunger.
- Funding Source Analysis: STRC sales have funded over 27,000 BTC since its November launch, becoming the primary engine for the firm's capital raises, highlighting its importance in the Bitcoin investment strategy.
- Market Response and Risks: Despite facing cash flow pressures from high dividend costs, MicroStrategy plans to continue increasing its Bitcoin holdings, indicating that its strategy in response to market volatility is to invest more, demonstrating confidence in Bitcoin's long-term value.
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- Price Drop: Bitcoin fell below the $73,000 mark on Tuesday, hitting a low of $72,884.38, with a daily decline exceeding 6%, marking its lowest level since November 6, 2024, indicating heightened market aversion to risk assets.
- Year-to-Date Performance: Bitcoin has decreased by 16% year-to-date as investors continue to rotate out of risk-on assets amid growing geopolitical concerns, reflecting a cautious market sentiment ahead of crucial economic data releases.
- Market Reaction: Strategy, a bitcoin treasury firm, saw its stock drop by 9%, highlighting the significant impact of the digital asset's pullback on related companies and potentially diminishing investor confidence.
- Delayed Economic Data: The partial government shutdown has delayed the release of key U.S. economic data, further exacerbating market uncertainty and potentially influencing investor decisions and market trends.
See More
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- Bitcoin's New Lows: Bitcoin has fallen below $73,000, dropping over 6% in a day, reflecting a pessimistic market sentiment particularly influenced by the Fed chair nomination that has caused volatility.
- Gold and Silver Rebound: Gold and silver have rebounded by 5% each, with gold posting its largest single-day gain since 2008, indicating a rising demand for safe-haven assets that could impact Bitcoin's market position.
- Increased Market Volatility: Options flows indicate strong demand for near-term downside protection, pushing short-dated volatility above longer-dated contracts, signaling heightened concerns about Bitcoin's future price movements.
- Testing Technical Support: Bitcoin is testing the critical support level at $75,831, with a break below potentially triggering further declines to $72,000-$68,000, and current trends suggest a low likelihood of a rebound.
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- Australia's Rate Hike: The Reserve Bank of Australia raised its benchmark interest rate by 25 basis points to 3.85%, marking its first hike since November 2023, reflecting economic pressures from inflation exceeding expectations, which could impact consumer spending and economic growth.
- Asia-Pacific Market Rebound: The Asia-Pacific markets staged a strong rebound on Tuesday after Monday's steep losses, with South Korea's KOSPI index soaring 6.7%, indicating renewed investor confidence in economic recovery and presenting new opportunities for investors.
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- Market Rebound: South Korea's Kospi index surged 6.7% on Tuesday, demonstrating strong market recovery, particularly after a 5% drop the previous day, indicating a rebound in investor confidence.
- Trade Deal Impact: President Trump announced a reduction in reciprocal tariffs on India from 25% to 18%, leading to a 5% jump in India's Nifty 50 index at the open, which is expected to stimulate external growth for the Indian economy, particularly in 2026.
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Strategy Inc. Earnings Preview for Q4 2025
- Earnings Expectations: Strategy Inc. is projected to report a loss of $18.64 per share for Q4 2025, a significant increase from a loss of $3.20 per share in the same quarter last year, highlighting the company's vulnerability amid cryptocurrency market fluctuations.
- Revenue Forecast: The expected quarterly revenue of $118.92 million represents a decline from $120.70 million year-over-year, indicating mounting pressure on the company’s market competitiveness and profitability.
- Stock Rating Changes: Despite maintaining a 'Buy' recommendation from 12 analysts, the price target has been drastically reduced from $705 to $480.53, reflecting diminished market confidence in the company's future performance.
- Bitcoin Impact: With 712,647 BTC valued at approximately $54.53 billion, the company's earnings may face substantial hits due to a 23% decline in Bitcoin prices, exacerbating downward pressure on the stock price.
See More
MicroStrategy Doubles Down on Bitcoin Investment
- Bitcoin Holdings Status: MicroStrategy currently holds 712,647 BTC at an average purchase price of $76,037, with Bitcoin trading around $78,000, resulting in unrealized gains narrowing to less than 3%.
- Dividend Increase Strategy: The company raised the dividend on its Series A Perpetual Stretch Preferred Stock (STRC) by 25 basis points to 11.25%, aiming to attract new capital for future Bitcoin purchases, with this yield significantly exceeding typical corporate bonds, reflecting the company's capital hunger.
- Funding Source Analysis: STRC sales have funded over 27,000 BTC since its November launch, becoming the primary engine for the firm's capital raises, highlighting its importance in the Bitcoin investment strategy.
- Market Response and Risks: Despite facing cash flow pressures from high dividend costs, MicroStrategy plans to continue increasing its Bitcoin holdings, indicating that its strategy in response to market volatility is to invest more, demonstrating confidence in Bitcoin's long-term value.
See More
Bitcoin Dips Below $73,000 Mark Amid Market Concerns
- Price Drop: Bitcoin fell below the $73,000 mark on Tuesday, hitting a low of $72,884.38, with a daily decline exceeding 6%, marking its lowest level since November 6, 2024, indicating heightened market aversion to risk assets.
- Year-to-Date Performance: Bitcoin has decreased by 16% year-to-date as investors continue to rotate out of risk-on assets amid growing geopolitical concerns, reflecting a cautious market sentiment ahead of crucial economic data releases.
- Market Reaction: Strategy, a bitcoin treasury firm, saw its stock drop by 9%, highlighting the significant impact of the digital asset's pullback on related companies and potentially diminishing investor confidence.
- Delayed Economic Data: The partial government shutdown has delayed the release of key U.S. economic data, further exacerbating market uncertainty and potentially influencing investor decisions and market trends.
See More
Bitcoin Hits Fresh Lows as Gold and Silver Rebound
- Bitcoin's New Lows: Bitcoin has fallen below $73,000, dropping over 6% in a day, reflecting a pessimistic market sentiment particularly influenced by the Fed chair nomination that has caused volatility.
- Gold and Silver Rebound: Gold and silver have rebounded by 5% each, with gold posting its largest single-day gain since 2008, indicating a rising demand for safe-haven assets that could impact Bitcoin's market position.
- Increased Market Volatility: Options flows indicate strong demand for near-term downside protection, pushing short-dated volatility above longer-dated contracts, signaling heightened concerns about Bitcoin's future price movements.
- Testing Technical Support: Bitcoin is testing the critical support level at $75,831, with a break below potentially triggering further declines to $72,000-$68,000, and current trends suggest a low likelihood of a rebound.
See More
SpaceX Acquires xAI, IPO Valuation Expected at $1.25 Trillion
- Acquisition and IPO Plans: SpaceX announced the acquisition of startup xAI, with a projected post-merger valuation of $1.25 trillion, which not only provides xAI with much-needed capital infusion but also potentially accelerates SpaceX's advancements in the AI sector.
- SoftBank and Intel Collaboration: SoftBank subsidiary Saimemory has signed an agreement with Intel to jointly develop next-generation memory technologies, with prototypes expected by fiscal year 2028 and commercialization targeted for fiscal 2029, enhancing both companies' competitive edge in the high-tech industry.
- Australia's Rate Hike: The Reserve Bank of Australia raised its benchmark interest rate by 25 basis points to 3.85%, marking its first hike since November 2023, reflecting economic pressures from inflation exceeding expectations, which could impact consumer spending and economic growth.
- Asia-Pacific Market Rebound: The Asia-Pacific markets staged a strong rebound on Tuesday after Monday's steep losses, with South Korea's KOSPI index soaring 6.7%, indicating renewed investor confidence in economic recovery and presenting new opportunities for investors.
See More
Indian Markets Surge on US-India Trade Deal Announcement
- Market Rebound: South Korea's Kospi index surged 6.7% on Tuesday, demonstrating strong market recovery, particularly after a 5% drop the previous day, indicating a rebound in investor confidence.
- Trade Deal Impact: President Trump announced a reduction in reciprocal tariffs on India from 25% to 18%, leading to a 5% jump in India's Nifty 50 index at the open, which is expected to stimulate external growth for the Indian economy, particularly in 2026.
- Precious Metals Surge: On Tuesday, spot gold rose by 4.8% and spot silver surged by 7.3%, reflecting increased investor demand for precious metals, although analysts express concerns about silver becoming this year's
See More
