Strategy Inc.’s Class A shares (MSTR) fell 5% Thursday ahead of the Bitcoin-heavy company’s Oct. 29 quarterly results, during a broader technology-led sell-off and a decline in Bitcoin.
Investing.com historical data show the shares closed at $145.80 on Oct. 22, down from $153.48 in the previous session.
MSTR’s losses came during a broader retreat in U.S. equities: the S&P 500 fell 1.21% to 7,663.43, while the Nasdaq Composite fell 2.60% to 26,008.86. Reuters attributed pressure on technology stocks to renewed doubts over the scale of artificial intelligence spending. The news service also reported oil at a five-month high amid concerns about Middle East conflict and inflation.
The Associated Press quoted Angelo Kourkafas, senior global strategist at Edward Jones, saying investors were assessing whether AI’s substantial upfront costs would be justified.
Bitcoin (BTC) closed at $81,241.46 on Oct. 22, compared with $84,011.97 on Oct. 21, according to Yahoo Finance’s UTC daily data. Strategy reported in an Oct. 19 filing that it held 848,517 BTC as of Oct. 18. The concurrent declines provide context for the stock’s move but do not establish how much Bitcoin’s price or the wider sell-off contributed.
Zacks estimated earnings of $21.50 per share for the third quarter, up 155.3% from a year earlier, and revenue of $130.4 million, up 1.3%. Those figures are forecasts. In an Oct. 5 filing, Strategy estimated a $20.91 billion gain on digital assets and $1.88 billion in related deferred tax expense for the quarter ended Sept. 30. The company said management prepared the estimates and its independent auditor had not audited or reviewed them.
Investing.com, citing options data compiled by Bloomberg, reported that options pricing implied a 3.4% share-price move after the earnings report. The estimate does not indicate a direction. Strategy said it will release results after U.S. markets close on Oct. 29 and hold a webinar at 5 p.m. ET that day.
