Strategy (NASDAQ:MSTR) Trading Up 9% – What’s Next?

Strategy Inc (NASDAQ:MSTR)’s share price rose 9% on Wednesday . The company traded as high as $135.51 and last traded at $135.8370. Approximately 11,574,833 shares were traded during mid-day trading, a decline of 51% from the average daily volume of 23,850,350 shares. The stock had previously closed at $124.61.

Strategy News Roundup

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: 21Shares launched the STRC ETP on Euronext Amsterdam, giving European retail and institutional investors regulated access to Strategy’s Bitcoin?backed preferred stock (variable dividend ~11.25%). This increases demand avenues and liquidity for Strategy’s BTC?linked securities. Read More.
• Positive Sentiment: Anchorage (crypto custodian/bank) publicly added STRC to its portfolio — a visible institutional endorsement that may attract other crypto?native allocations. Read More.
• Positive Sentiment: Analyst/strategist Tom Lee and others flagged that extreme short positioning can mark a bottom and seed short?squeeze dynamics; that narrative can amplify rallies in stocks used as leveraged Bitcoin proxies like MSTR. Read More.
• Positive Sentiment: Media note that the intraday move is tied to a rebound in Bitcoin prices — MSTR often outperforms on BTC rallies because its equity is treated as a levered Bitcoin proxy. Read More.
• Neutral Sentiment: Commentary on private?credit stress and structured?credit markets has raised debate over digital credit alternatives like STRC — this is a broader market discussion that could influence demand for BTC?backed corporate securities but is not yet a direct catalyst. Read More.
• Neutral Sentiment: Michael Saylor marked the company’s 100th announced BTC purchase (592 BTC), a milestone that reinforces Strategy’s long?term accumulation thesis but also highlights reliance on continued capital raises to fund buys. Read More.
• Negative Sentiment: Strategy is now the most?shorted large?cap U.S. stock (Goldman screen / multiple reports). Heavy short interest (~double?digit % of market cap in some screens) increases volatility risk and shows consensus bearish positioning that can pressure the stock on downside news. Read More.
• Negative Sentiment: Recent BTC purchases (e.g., the 592 BTC buy) were funded by equity issuance and preferred issuance plans, raising dilution concerns for common shareholders — a frequent source of negative sentiment and price weakness. Read More.
• Negative Sentiment: Fundamentals remain weak on a GAAP basis: prior quarterly results showed a large EPS miss, massive negative net margins and large unrealized BTC losses — investors focused on fundamentals may stay cautious despite crypto flows. (See company filings and quarterly release for details.)

Analysts Set New Price Targets

A number of research firms have recently commented on MSTR. Zacks Research upgraded shares of Strategy from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, February 10th. Citigroup reduced their price target on Strategy from $485.00 to $325.00 and set a “buy” rating for the company in a research report on Monday, December 22nd. Monness Crespi & Hardt raised Strategy from a “sell” rating to a “neutral” rating in a research report on Monday, November 10th. Wall Street Zen downgraded Strategy from a “hold” rating to a “sell” rating in a report on Sunday, February 8th. Finally, Cantor Fitzgerald started coverage on shares of Strategy in a report on Tuesday, January 27th. They set an “overweight” rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Strategy currently has an average rating of “Moderate Buy” and a consensus price target of $368.21.

Strategy Trading Up 8.8%

The company has a market cap of $38.96 billion, a price-to-earnings ratio of -7.37 and a beta of 3.54. The company has a current ratio of 5.62, a quick ratio of 0.66 and a debt-to-equity ratio of 0.18. The business’s 50 day moving average price is $150.25 and its 200-day moving average price is $235.60.

Strategy (NASDAQ:MSTR) last released its quarterly earnings results on Thursday, February 5th. The software maker reported ($42.93) earnings per share for the quarter, missing the consensus estimate of $46.02 by ($88.95). Strategy had a negative net margin of 806.34% and a negative return on equity of 8.74%. The company had revenue of $122.99 million during the quarter, compared to the consensus estimate of $117.42 million. During the same period in the prior year, the company earned ($3.03) earnings per share. The firm’s revenue was up 1.9% compared to the same quarter last year.

Insider Activity at Strategy

In other Strategy news, Director Jane A. Dietze bought 1,000 shares of Strategy stock in a transaction dated Tuesday, January 20th. The stock was bought at an average price of $99.48 per share, with a total value of $99,480.00. Following the completion of the transaction, the director owned 3,600 shares in the company, valued at $358,128. The trade was a 38.46% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Carl J. Rickertsen purchased 5,000 shares of the firm’s stock in a transaction that occurred on Monday, January 12th. The stock was acquired at an average price of $155.88 per share, for a total transaction of $779,400.00. Following the completion of the purchase, the director directly owned 5,000 shares of the company’s stock, valued at $779,400. This represents a ? increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have purchased 6,012 shares of company stock valued at $880,080. 8.46% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. D.A. Davidson & CO. raised its position in shares of Strategy by 71.4% in the second quarter. D.A. Davidson & CO. now owns 2,223 shares of the software maker’s stock valued at $899,000 after buying an additional 926 shares in the last quarter. AlphaQuest LLC lifted its position in shares of Strategy by 454.5% during the 2nd quarter. AlphaQuest LLC now owns 122 shares of the software maker’s stock valued at $49,000 after acquiring an additional 100 shares during the period. Resonant Capital Advisors LLC grew its holdings in shares of Strategy by 39.4% during the 2nd quarter. Resonant Capital Advisors LLC now owns 991 shares of the software maker’s stock worth $401,000 after purchasing an additional 280 shares in the last quarter. Nisa Investment Advisors LLC increased its position in shares of Strategy by 30.7% in the second quarter. Nisa Investment Advisors LLC now owns 20,605 shares of the software maker’s stock worth $8,329,000 after purchasing an additional 4,840 shares during the period. Finally, Envestnet Asset Management Inc. raised its stake in Strategy by 4.2% in the second quarter. Envestnet Asset Management Inc. now owns 19,936 shares of the software maker’s stock valued at $8,059,000 after purchasing an additional 795 shares in the last quarter. Institutional investors and hedge funds own 59.84% of the company’s stock.

Strategy Company Profile

Strategy, formerly known as MicroStrategy, Incorporated (NASDAQ: MSTR) is a global provider of enterprise analytics and mobility software. The company’s flagship platform offers business intelligence, data discovery, and advanced visualizations that enable organizations to analyze large volumes of data and deliver actionable insights. In addition to traditional on-premises deployments, Strategy provides a range of cloud-based services and managed offerings that allow customers to leverage the power of its analytics tools without managing complex infrastructure.

Founded in 1989 by Michael J.