MSTR Stock Price Flips 200 WMA Amid Bitcoin Tailwinds Despite Huge Loss

Key Insights

• The MSTR stock price has soared and crossed the 200-day Weighted Moving Average.
• The company reported a $12.5 billion net loss for the quarter.
• Bitcoin price continues to rise, which will benefit MicroStrategy.

MSTR stock price extended its recovery in early May 2026 as Strategy benefited from the latest Bitcoin rally. Shares climbed toward $186 after rebounding sharply from February lows near $103. The recovery pushed the stock above its 200-day Weighted Moving Average, strengthening bullish technical momentum. The move came despite the company reporting a quarterly net loss of $12.5 Billion. Investors instead focused on rising Bitcoin prices, improving ETF inflows, and the company’s expanding crypto holdings.

MSTR Stock Price Approaches Golden Cross Setup

The daily chart shows MSTR stock price recovering steadily since February after forming a double-bottom structure near $103.52. The neckline of that formation appeared near $150, which the stock successfully reclaimed during April.

That recovery shifted momentum sharply higher. MSTR has now moved above the 100-day and 200-day Weighted Moving Averages, increasing the probability of a golden cross pattern forming in the coming weeks.

A golden cross occurs when shorter-term moving averages rise above longer-term averages, often signaling sustained bullish momentum. Traders widely track this setup because it historically aligns with stronger upside continuation phases.

The last comparable breakout occurred in April 2025 when MSTR reclaimed its long-term moving averages near $298. The stock later rallied toward $457 over the following months.

Current price action now points toward the psychological $300 level as the next major upside target. Reaching that zone would represent roughly 60% upside from current levels near $186.

At the same time, volatility remains elevated because the stock continues trading closely with Bitcoin price direction. Sharp BTC corrections would likely pressure MSTR momentum as well.

Bitcoin Rally is the Main Catalyst for the MicroStrategy Rally

The ongoing MSTR share price rally is primarily due to the Bitcoin rally, which has pushed it to $81,000 for the first time in months.

Soaring Bitcoin price is a highly bullish thing for the company as it now holds 818,334 coins valued at $66 billion. These coins would be worth $49.1 billion if Bitcoin remained at its lowest level this year.

Bitcoin has several notable catalysts, with the most important being soaring Bitcoin ETF inflows, which jumped by over $467 million on Tuesday.

These funds have now added over $1.63 billion this month, $300 million lower than what they added in the whole of April. They have now added $4.92 billion in the last three months, a sign that demand continues rising.

Bitcoin price has also formed some important technicals, pointing to more gains, potentially to $100k later this year. A move to this level would bring the value of its Bitcoin holdings to over $81 billion.

Strategy Reported Another Large Quarterly Loss

Despite the strong stock recovery, Strategy reported another substantial quarterly loss. Financial results released Tuesday showed the company posted a net loss of approximately $12.5 Billion during the first quarter.

That figure slightly improved from the roughly $14 Billion loss recorded during the fourth quarter of 2025. Most of the losses reflected unrealized declines tied to Bitcoin valuation changes during the earlier market downturn.

Investors largely expected the weak results, limiting negative reaction following the earnings release. Bitcoin remained under pressure for much of the quarter before recovering during April and May.

Importantly, these losses remain unrealized unless Strategy sells its holdings. Continued Bitcoin appreciation during the current quarter would materially improve future balance sheet performance.

The company also adjusted part of its public messaging regarding Bitcoin ownership strategy. Previous statements strongly emphasized a “never sell Bitcoin” approach. However, recent disclosures acknowledged that the company could consider selling BTC under specific circumstances.

According to the filing, Strategy may eventually sell Bitcoin to strengthen liquidity, repay obligations, or manage debt structures if management determines it becomes financially advantageous.

This shift attracted attention because some analysts have questioned the sustainability of Strategy’s financing model. The company regularly raises capital through equity issuance and debt offerings to purchase additional Bitcoin.

That structure has substantially diluted shareholders over time. Outstanding shares increased from roughly 70 Million several years ago to more than 320 Million currently.

Still, Strategy maintains approximately $2.2 Billion in cash reserves, which should support near-term debt obligations and dividend commitments.

The broader debate around Strategy’s business model, therefore, remains divided. Supporters view the company as the largest institutional Bitcoin proxy in public markets, while critics continue warning about dilution risk and dependence on sustained Bitcoin appreciation.

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