Strategy (NASDAQ:MSTR) Trading 9% Higher – Here’s Why

Strategy Inc (NASDAQ:MSTR) shares were up 9% during trading on Wednesday . The company traded as high as $135.51 and last traded at $135.8370. Approximately 11,574,833 shares traded hands 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.

Key Strategy News

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.)

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on MSTR shares. BTIG Research set a $250.00 price target on Strategy and gave the company a “buy” rating in a report on Friday, February 6th. Mizuho set a $320.00 target price on shares of Strategy and gave the company an “outperform” rating in a research report on Tuesday, February 17th. Monness Crespi & Hardt upgraded shares of Strategy from a “sell” rating to a “neutral” rating in a research report on Monday, November 10th. Cantor Fitzgerald started coverage on shares of Strategy in a research note on Tuesday, January 27th. They set an “overweight” rating for the company. Finally, Sanford C. Bernstein set a $450.00 price objective on shares of Strategy and gave the company an “outperform” rating in a research note on Monday, December 8th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $368.21.

Strategy Trading Up 8.8%

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

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

Insider Transactions at Strategy

In other Strategy news, Director Jane A. Dietze bought 1,000 shares of the stock in a transaction that occurred on Tuesday, January 20th. The stock was acquired at an average cost of $99.48 per share, with a total value of $99,480.00. Following the purchase, the director owned 3,600 shares in the company, valued at $358,128. This trade represents a 38.46% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Carl J. Rickertsen purchased 5,000 shares of the business’s stock in a transaction on Monday, January 12th. The stock was bought at an average cost of $155.88 per share, for a total transaction of $779,400.00. Following the purchase, the director owned 5,000 shares of the company’s stock, valued at approximately $779,400. This represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders have bought 6,012 shares of company stock worth $880,080. 8.46% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Strategy

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MSTR. Capital International Investors lifted its holdings in shares of Strategy by 37.3% in the fourth quarter. Capital International Investors now owns 20,614,868 shares of the software maker’s stock valued at $3,132,460,000 after purchasing an additional 5,600,573 shares in the last quarter. Vanguard Group Inc. raised its position in Strategy by 21.0% in the 4th quarter. Vanguard Group Inc. now owns 24,062,886 shares of the software maker’s stock valued at $3,656,356,000 after buying an additional 4,178,611 shares during the last quarter. Amundi lifted its stake in Strategy by 373.7% in the 4th quarter. Amundi now owns 4,790,702 shares of the software maker’s stock valued at $727,947,000 after acquiring an additional 3,779,340 shares in the last quarter. Norges Bank acquired a new position in Strategy during the 4th quarter worth approximately $536,140,000. Finally, Capital Research Global Investors raised its holdings in shares of Strategy by 66.7% in the fourth quarter. Capital Research Global Investors now owns 7,008,535 shares of the software maker’s stock valued at $1,064,963,000 after purchasing an additional 2,803,277 shares during the last quarter. 59.84% of the stock is owned by institutional investors and hedge funds.

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.