MicroStrategy’s Q3 Earnings Letdown: Stock Price Drops 4.23%

Several publicly traded companies have already bought significant Bitcoin, and some of them are constantly buying to boost their digital assets investment; among all such companies, MicroStrategy holds the most number of Bitcoins. 

On October 30, 2024, MSTR reported its earnings and revenue for Q3 2024 the reported revenue was $116.071 million, which is 4.43% less than estimates, and the reported EPS fails to meet the expectations reaching negative $1.72. 

However, the estimated revenue of the company for the last quarter of this year is $125.17 million, and the estimated EPS is negative at $0.11. It is worth noting that MSTR stock has failed to meet the expectations in terms of EPS since the first quarter of 2024.  

Since its mainstream purchase of BTC, MicroStrategy stock has seen a major sharp spike of more than 257 percent in the year-to-date time frame. 

The company recently reported its Q3 earnings and revenue; even after negative reported revenue, the company remains bullish over its Bitcoin buying and holding strategy. 

MicroStrategy (MSTR) Stock Price Overview 

When writing, MSTR stock was trading at $247.31, with a decline of 4.23% in one trading session. The uneven growth of MicroStrategy in a short period of time has raised severe concern over price manipulation.  

A known finance expert Peter Schiff noted in a recent X post that the stock of MicroStrategy is overvalued, and there are likely chances that it might bust in the near future. Yet he also criticized the BTC acquisition strategy of MicroStrategy and its chairman Micheal J Saylor. 

The weekly, monthly, and quarterly performance of MSTR is widely appreciated as it added 14.99%, 46.66%, and 53.13%. The company is further committed to expanding its Bitcoin holding by stock sale or fundraising. 

As per available information, 162.91 million MSTR shares are free-floating and available for trading for common traders, and 20.80 million shares are still closely held by the administration, initial investors, and other financiers of the company.  

If the mixed sentiments remain in the coming session, then the price might remain steady, and in case of bullish dominance, it is expected that the MSTR stock price might soon mark a fresh resistance of $260, followed by $285 and $300. 

On October 29, 2024, MSTR stock managed to trade close to its all-time high, and in that trading session, it opened trading at $264.25, and after hitting a high of $267.89, it fell and closed below $250.  

Is Bitcoin Prices Impacting MSTR Stock Price? 

There are no direct claims or proof that the skyrocketing prices of Bitcoin are affecting the prices of MSTR stock, but analysts argue that companies holding BTC are profiting. 

Some say that institutional buying of Bitcoin has changed the image of Bitcoin, and the companies that hold these are seen as more advanced in terms of digitalization. 

MicroStrategy is one of the biggest companies with one of the biggest BTC holdings. The company is generally regarded as setting the example for institutions to explore digital assets and earn profit and exposure.  

Most recently, a Japanese giant company also seemed to follow the same Bitcoin acquisition strategy as MicroStrategy.