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Why is MSTY Down Today After Earnings Miss

The Tidal Trust II YieldMax MSTR Option Income Strategy ETF (MSTY) closed down 2.3% at $27.17 on February 5th, as MicroStrategy Inc. reported disappointing Q4 2024 earnings, with adjusted EPS of $(3.20) and sales of $120.697 million, missing the $123.248 million estimate. The earnings miss and widening losses have put pressure on MicroStrategy's stock, which is a significant component of the ETF. Additionally, MicroStrategy's recent decision to pause its aggressive Bitcoin buying spree has added to investor uncertainty, as the company had been on a 12-week purchasing streak leading up to the earnings report.