State Retirement Fund Increases MicroStrategy Stake Despite 20% Price Target Cut
A U.S. state retirement fund increased its stake in MicroStrategy even after Mizuho cut the firm's price target by 20% to $320. The Bitcoin treasury company posted a $12.4 billion Q4 2025 net loss and its stock has fallen 65% since October as its 717,131 BTC holdings trade 12% below cost.
1. State Fund Boosts Position
A major U.S. state retirement fund has increased its shareholding in MicroStrategy despite recent challenges, signaling continued institutional confidence in the firm's Bitcoin-focused strategy and long-term outlook.
2. Q4 2025 Financial Results
MicroStrategy reported a net loss of $12.4 billion in the fourth quarter of 2025, driven by Bitcoin writedowns and operational expenses, contributing to a 65% drop in its share value since October 1.
3. Bitcoin Treasury Underwater
The company holds 717,131 BTC, currently trading around $65,844, which is roughly 12% below its average purchase price of $76,027 per coin, resulting in an mNAV of 1.19 and highlighting valuation pressure.
4. Analyst Price Target Cut
Mizuho Securities reduced its price target on MicroStrategy shares by 20%, from $403 to $320, while maintaining an Outperform rating based on expected Bitcoin market recovery and the firm's strategic position.