MicroStrategy Stock Seen Swinging 9% After 1,550 Bitcoin Purchase
MSTR•MicroStrategy sold some bitcoin for the first time since 2022, sparking a 22% year-to-date stock decline before it purchased 1,550 bitcoin at an average $65,000 each. Options traders now expect a 9% share swing this week, with potential trading between $115 and $139 as Citi maintains a bullish stance.
1. Bitcoin Sale and Stock Impact
MicroStrategy sold a portion of its bitcoin holdings for the first time since 2022, creating investor concern that pushed the stock down more than 22% year-to-date. Though the sale was relatively small, it marked a shift in the company’s crypto strategy and amplified volatility in shares.
2. Recent Bitcoin Acquisition
Shortly after the sale, MicroStrategy announced it acquired 1,550 bitcoin at an average cost of $65,000 each, reassuring some investors about its long-term commitment to digital assets. The purchase underscored management’s active approach to balancing holdings amid fluctuating market prices.
3. Options Market Volatility Expectations
Options-based pricing now implies MicroStrategy shares could swing roughly 9% in either direction by week’s end, suggesting a trading range between approximately $115 on the downside and $139 on the upside. This heightened implied volatility reflects market uncertainty around the firm’s crypto strategy and broader digital-asset trends.
4. Analyst Outlook and Price Targets
Citi maintains its bullish stance with a $112,000 base-case bitcoin forecast, alongside a $57,000 bear case and $166,000 bull case, supporting an optimistic view of MicroStrategy’s asset mix. All five major brokerage analysts maintain buy ratings, with a consensus target of $322 implying nearly 170% potential upside.
