Strategy (NASDAQ:MSTR) Shares Down 8.2% Following Weak Earnings

Strategy Inc (NASDAQ:MSTR)’s stock price dropped 8.2% during mid-day trading on Friday following a dissappointing earnings announcement. The company traded as low as $91.78 and last traded at $89.7420. 2,893,509 shares changed hands during trading, a decline of 86% from the average session volume of 20,941,900 shares. The stock had previously closed at $97.74.

The software maker reported ($24.45) earnings per share for the quarter, missing analysts’ consensus estimates of ($2.19) by ($22.26). The firm had revenue of $122.37 million during the quarter, compared to analyst estimates of $122.90 million. Strategy had a negative return on equity of 26.97% and a negative net margin of 2,482.01%.The firm’s revenue was up 6.9% on a year-over-year basis. During the same period last year, the business earned $32.52 EPS.

Key Stories Impacting Strategy

Here are the key news stories impacting Strategy this week:

• Positive Sentiment: BTIG Research reaffirmed its Buy rating and maintained a $250 price target, implying substantial upside from recent levels. BTIG rating report
• Positive Sentiment: Strategy’s Bitcoin holdings increased to 843,775 BTC, approximately 25% higher than at the start of 2026. The company also built a $3.75 billion U.S. dollar reserve, which management said can cover more than two years of preferred dividends and interest obligations. Strategy posts Q2 loss as Bitcoin slump drives unrealized losses
• Positive Sentiment: Bitcoin’s recovery above $65,000 helped improve sentiment toward Strategy, whose valuation and stock performance are closely tied to the cryptocurrency. Investors also anticipate that the company could resume Bitcoin purchases after raising cash and pausing acquisitions to strengthen its balance sheet. Why Bitcoin whale Strategy may resume buying crypto
• Neutral Sentiment: Management said it has learned the importance of maintaining liquid U.S. dollars rather than relying solely on Bitcoin, signaling a more conservative approach to funding preferred-stock obligations and interest payments. Strategy CEO discusses liquid U.S. dollar reserves
• Negative Sentiment: Strategy reported an $8.22 billion second-quarter net loss, or $24.45 per diluted share, versus a profit of roughly $10 billion a year earlier. The loss was primarily caused by an $8.32 billion unrealized decline in the value of its Bitcoin holdings. Revenue rose 6.9% to $122.4 million but fell slightly short of estimates, while the per-share loss was substantially wider than forecasts. Strategy misses Q2 earnings estimates
• Negative Sentiment: The company sold approximately $218 million of Bitcoin and issued millions of common shares to raise cash, creating dilution concerns. Its prolonged pause in Bitcoin purchases also raises questions about whether the aggressive accumulation strategy is becoming harder to finance. Strategy share sales draw criticism

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Barclays assumed coverage on Strategy in a research report on Tuesday, July 7th. They set an “overweight” rating and a $130.00 price objective for the company. Zacks Research upgraded Strategy from a “strong sell” rating to a “hold” rating in a research report on Monday, July 6th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Strategy in a research note on Wednesday, June 24th. BTIG Research reiterated a “buy” rating and set a $250.00 price target on shares of Strategy in a research report on Friday. Finally, Canaccord Genuity Group lowered their price target on Strategy from $163.00 to $130.00 and set a “buy” rating on the stock in a report on Tuesday, June 30th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $257.88.

Insider Activity

In other Strategy news, CFO Andrew Kang sold 33,062 shares of the company’s stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $118.73, for a total value of $3,925,451.26. Following the completion of the sale, the chief financial officer directly owned 68,733 shares in the company, valued at $8,160,669.09. This represents a 32.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jarrod M. Patten sold 15,050 shares of the stock in a transaction on Friday, May 29th. The shares were sold at an average price of $154.94, for a total value of $2,331,847.00. Following the transaction, the director directly owned 28,000 shares of the company’s stock, valued at approximately $4,338,320. The trade was a 34.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders purchased 11,166 shares of company stock worth $1,014,265 and sold 181,422 shares worth $23,144,128. Insiders own 6.49% of the company’s stock.

Institutional Trading of Strategy

A number of hedge funds and other institutional investors have recently modified their holdings of MSTR. Binnacle Investments Inc raised its position in Strategy by 492.9% in the second quarter. Binnacle Investments Inc now owns 83 shares of the software maker’s stock worth $34,000 after acquiring an additional 69 shares in the last quarter. Wealth Watch Advisors INC acquired a new position in shares of Strategy in the 3rd quarter worth approximately $44,000. Fideuram Asset Management Ireland dac acquired a new position in shares of Strategy in the 4th quarter worth approximately $25,000. Dogwood Wealth Management LLC raised its holdings in shares of Strategy by 280.0% in the 4th quarter. Dogwood Wealth Management LLC now owns 190 shares of the software maker’s stock worth $29,000 after purchasing an additional 140 shares in the last quarter. Finally, Darwin Wealth Management LLC bought a new stake in shares of Strategy in the 2nd quarter worth approximately $77,000. Institutional investors own 59.84% of the company’s stock.

Strategy Trading Down 7.6%

The firm has a market capitalization of $31.64 billion, a price-to-earnings ratio of -2.23 and a beta of 3.54. The firm’s 50 day moving average is $111.67 and its 200 day moving average is $135.32. The company has a quick ratio of 6.05, a current ratio of 6.05 and a debt-to-equity ratio of 0.22.

About Strategy

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.