MicroStrategy's Stock Falls As Bitcoin Crashes: What's Going On?

MicroStrategy Incorporated MSTR shares are trading lower Friday as the price of Bitcoin falls. Here's a look at what to know. 

What To Know:

MicroStrategy is the largest institutional holder with 226,331 Bitcoins, making the stock susceptible to fluctuations correlated to the price of the cryptocurrency. Bitcoin has fallen nearly 12% over the past five days as investors watch the movement of a large amount of Bitcoin by Mt. Gox from a cold wallet to a new wallet, possibly in preparation for payouts to its creditors. 

At the time of publication, Bitcoin is down 3.51% over the past 24 hours at $55,430.82, according to data from Benzinga Pro.

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Last week, MicroStrategy announced updates to MicroStrategy ONE which now enables users to embed AI-powered data insights into any web or mobile application. 

The company also announced HyperIntelligence is now powered by MicroStrategy's generative AI platform, Auto, enabling users to ask natural language questions and receive instant responses from business intelligence data within their existing applications.

According to data from Benzinga Pro, MicroStrategy shares are trading below the stock’s 50-day moving average of $1,437.00 and 22.83% of shares are being sold short. 

Will MSTR Stock Go Up?

When trying to assess whether or not MicroStrategy will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $2058.30 on MicroStrategy. The Street high target is currently at $2890 and the Street low target is $1590. Of all the analysts covering MicroStrategy, 10 have positive ratings, no one has neutral ratings and no one has negative ratings.

In the last month, 5 analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering MicroStrategy have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. MicroStrategy is 241.99% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.

For a broad overview of everything you need to know about MicroStrategy, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

MSTR Price Action: According to Benzinga Pro, MicroStrategy shares are down 5.61% at $1,229.00 at the time of publication Friday.

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