Why Is MSTR Stock Falling In Pre-Market Today?

Bitcoin-proxy Strategy (MSTR) slipped in premarket trade despite a Louisiana pension fund revealing a new $3.2 million stake.

• Louisiana's pension fund revealed that it held a $3.2 million stake in the Bitcoin proxy software company.
• Retail sentiment on Stocktwits cooled from “extremely bullish” to “bullish,” with chatter levels still at ‘high’ over the past week. 
• However, analysts are still divided. Some, like Freedom 40, see $209 as an upside for Strategy, while Mizuho lowered its target but kept its ‘Outperform’ rating intact.

Strategy Incorporated (MSTR) shares slipped in premarket trade early Tuesday after new institutional ownership data, and the latest technical analysis commentary pushed Bitcoin-proxy stock back into traders' crosshairs.

Strategy (MSTR) tanked by 6% and traded at roughly $162.78 in premarket hours on Tuesday. The move follows the Louisiana State Employees’ Retirement System (LASERS), revealing a $3.2 million position in Strategy on Sunday. 

The $16 billion public pension fund, in its most recent portfolio filing, disclosed it held 17,900 Strategy shares as of December 31, accounting for about 0.02% of its portfolio. The fund oversees retirement money for more than 100,000 Louisiana teachers and other public employees and has core positions in mega-cap tech names, including Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOG).

On Stocktwits, retail sentiment around MSTR dropped from ‘extremely bullish’ to ‘bullish’ territory, as chatter around the equity remained at ‘high’ levels over the past day. 

Analysts Remain Split On MSTR

Fanning the flames of short-term recovery, market commentator Freedom By 40 said he thinks that MSTR appears to be “either bottomed or really close to bottom” and listed $209 as an upside threshold to watch for confirmation. The market commentator said the call makes the recent consolidation look good rather than bad, and that momentum could lead to a technical breakout.

Last week, Mizuho Financial Group, one of Japan's largest megabanks, lowered its price target on Strategy from $484 to $403, but it still gave the stock an Outperform rating, per TheFly. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<