Bitcoin holding company Microstrategy, whose financial performance is closely tied to the value of its Bitcoin holdings, is set to release its earnings on Monday. Investors will be keenly watching for any signs of a Bitcoin-led boost to the company’s bottom line, which could influence its stock performance.
MSTR – 4H Chart
MSTR has found some support at the $1,220 level and is now looking for a push toward the $1,392 resistance level.
Microstrategy, a software company, has distinguished itself by amassing a substantial Bitcoin portfolio under the leadership of its previous CEO and founder, Michael Saylor. As of March 19, the company’s Bitcoin holdings stood at 214,246 bitcoins, valued at an impressive $13.9 billion. However, this strategic move has not been challenging, as the company has recorded $2.27 billion in cumulative impairment losses since it began holding Bitcoin on its balance sheet.
Analyst estimates for MicroStrategy are to report a first-quarter 2024 loss per share of $0.55. Analysts also say that if the company adopts a different accounting standard, it could become eligible for inclusion in the S&P 500.
The company is based in the US, and its shares are highly liquid. Fifty per cent of its outstanding shares are available for retail trading, and its market cap is more significant than $18 billion. MicroStrategy has now reported a loss in 10 of the past 14 quarters.
Michael Saylor has been selling shares recently, and some speculate it is to buy a new BTC, but it may be a negative. As of Friday, Saylor sold 370,000 shares worth nearly $373.7 million. Thanks to a surge in the price of the world’s largest crypto, Saylor has earned almost $370 million from stock sales this year.
The Bitcoin halving, where block mining rewards are cut in half, is less than 25 blocks away, and the coin is hovering around the $64,000 level on Friday. BTC has suffered a drop of almost 20% from its all-time high of $73,777.
Weakness in GDP could speed up rate hikes, but a stubborn PCE number would slow them down.
