MicroStrategy (MSTR) Stock After Earnings: Is the Bearish Narrative Still in Play?

MicroStrategy’s latest earnings drop—did the Bitcoin bet backfire or is this just another dip for crypto’s favorite corporate hodler?

Earnings Fallout: Red Flags or Red Herrings?

The numbers are out, and Wall Street’s crypto-skeptics are sharpening their knives. MSTR’s post-earnings volatility has traders scrambling—bulls see a buying opportunity, bears smell blood. Same story, different quarter.

Bitcoin Anchor or Millstone?

With treasury reserves deeper in BTC than ever, MicroStrategy’s fate stays lashed to crypto’s most unpredictable asset. When Bitcoin sneezes, MSTR catches pneumonia—but Saylor’s crew keeps doubling down.

Short Sellers Circle as Institutions Hesitate

Hedge funds love a good narrative, and ‘overleveraged crypto gambler’ plays well in 2025. Meanwhile, traditional funds still treat the stock like a radioactive meme—proving old finance grudges die hard.

One thing’s clear: in a market where most CEOs hedge, Saylor would rather YOLO. Whether that’s visionary or reckless depends entirely on Bitcoin’s next move—and whether you’ve got the stomach to watch.

MicroStrategy (MSTR) stock bounced back slightly earlier this month after a sharp fall following its second-quarter report.

The company’s strong link to Bitcoin remains at the center of investor interest as it continues to build on its digital asset holdings.

MicroStrategy Stock Recovers After Q2 Earnings Dip

MicroStrategy stock fell nearly 9% on July 31, 2025, after releasing its second-quarter earnings.

Notably, the results did not meet market expectations and led to a drop in the MSTR stock price.

However, in the days that followed, the stock gained back its losses. Interestingly by August 7, the MicroStrategy stock closed at $402.01, marking a full recovery.

This movement came after five straight sessions of growth. During this period, MicroStrategy’s stock ROSE by 4.85%.

It also recorded a small dip in pre-market trading, sitting at $400.52. Currently, the company’s market value as of that date stands at about $113.99 billion with stock price down 1.42% to $396.31.

The quick rebound caught the attention of investors who closely follow its bitcoin strategy.

A recent chart from Seeking Alpha showed that the MicroStrategy stock had declined steadily in the second half of July before turning higher in early August.

This shift followed renewed interest in the company’s digital asset exposure.

Bitcoin Still at the Center of the MSTR Stock Valuation

MicroStrategy remains one of the most well-known public companies holding Bitcoin.

Reports indicated that it currently holds 628,791 BTC, which it bought for a total of $46.08 billion.

Its decision to treat Bitcoin as a reserve asset continues to shape its overall business direction.

More importantly, in July, the company filed to raise $4.2 billion through a stock offering.

According to the filing, the money WOULD go toward buying more Bitcoin. This move supports its long-term plan to grow its holdings over time.

Management also updated its Bitcoin yield forecast for the year. The new target is 30%, based on the idea that Bitcoin could rise to $150,000.

Consequently, if that eventually happens, the company expects to see strong earnings growth.

An analyst report from Seeking Alpha described MicroStrategy stock as offering a way for investors to gain exposure to Bitcoin without holding the asset directly.

The report noted that the company trades at a level that could be attractive to those who believe Bitcoin will climb higher in the future.

Commentary From Industry Leaders

In a separate news, Tom Lee, Chairman of BitMine has shared his views regarding MSTR stock in a recent podcast.

He suggested that MicroStrategy could one day become the largest public company in the U.S. if Bitcoin’s price reaches $1 million.

Lee compared the firm’s approach to how ExxonMobil once held top positions in the stock market due to its oil assets, not just earnings.

Lee explained that MicroStrategy’s value does not come from regular income. Instead, it depends on the value of its Bitcoin holdings.

He pointed out that this is not a new model in finance. Other companies have followed similar paths by focusing on the value of what they own rather than what they earn.

At the time of his remarks, MicroStrategy’s stock was trading around $380, with a market cap of over $113 billion.

That is still far behind top firms like Nvidia and Microsoft, with market values above $4 trillion and $3.9 trillion, respectively.

Some market participants believe that MicroStrategy’s future remains closely linked to Bitcoin.

Likewise, any major move in the price of the cryptocurrency could affect the MSTR stock value.

As long as the company continues to invest heavily in Bitcoin, investors will likely view it as a way to bet on the asset’s long-term rise.