MicroStrategy Incorporated ( MSTR ) shares are trading lower Tuesday amid a drop in the price of Bitcoin (CRYPTO: BTC). Here's a look at what's going on. 

The Details:

Bitcoin is down by more than 3% over the past 24 hours at $67,171.52, according to data from Benzinga Pro. MicroStrategy ( MSTR ) is the largest institutional holder of bitcoin with 214,278 bitcoins valued at approximately $5.074 billion. 

Last week, MicroStrategy's ( MSTR ) executive chairman Michael Saylor agreed to a $40 million settlement to resolve a tax fraud lawsuit filed in August 2022 which accused Saylor of failing to pay over $25 million in income taxes. 

A MicroStrategy ( MSTR ) spokesperson stated, “This was a personal tax matter involving Mr. Saylor. MicroStrategy ( MSTR ) was not responsible for his day-to-day affairs and did not oversee his individual tax responsibilities.”

The company also confirmed Saylor would personally pay the settlement amount in full.

According to data from Benzinga Pro, MicroStrategy ( MSTR ) is trading above the stock’s 50-day moving average of $1,430 and 21.62% of available shares are being sold short. 

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MSTR Stock Prediction 2024:

When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed in the future.

When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.

MicroStrategy's ( MSTR ) revenue has grown at an average rate of 0.4% annually over the past 5 years. The average 1-year price target from analysts is $1790.25, representing an expected 11.9% upside in 2025.

While past performance is not a guarantee of future results, investors should also look at a stock's historical performance when compared to both a benchmark index and the company's peers. Shares of MicroStrategy ( MSTR ) have seen an annualized return of 45.78%, outperforming the S&P 500 index by 37.71%. This compares to 27.68% growth in the overall Information Technology sector. MicroStrategy ( MSTR ) has a beta of 0.65.

MSTR Price Action: According to Benzinga Pro,MicroStrategy ( MSTR ) shares are down 3.56% at $1,543.00 at the time of publication Tuesday.

Image: Tamim Tarin from Pixabay