Strategy Stock Sheds 26% In 5 Days As Bitcoin Tumbles

Shares of Bitcoin investor Strategy plummeted 11% in the last 24 hours and almost 26% in the past five days, hammered by Bitcoin’s nosedive below $90,000 and a broader crypto market rout.

After a 3% drop in the past 24 hours, Bitcoin trades at $88,464.63 as of 1:02 a.m. EST. The king of cryptos has slumped 7% in the past week.

Strategy Stock Price Tumbles Amid Broader Crypto Market Correction

Some investors saw MSTR’s pullback as an opportunity to buy the dip, leading to the firm’s share price climbing over 1% in after-hours trading.

Despite the correction, some analysts are still bullish on MSTR. Among them are analysts at stock researcher Benchmark, who raised their price target for MSTR to $650 on Feb. 6. It closed yesterday at $250.51

Some Question The Sustainability Of Strategy’s Bitcoin Accumulation 

The sudden drop in MSTR’s price over the past 24 hours has led some analysts to question the sustainability of Strategy’s Bitcoin buying spree.

According to market analysis firm Kobeissi Letter, the company’s Bitcoin accumulation strategy “is largely contingent on the ability to raise additional capital” backed by its growing Bitcoin treasury. 

“In a situation where their liabilities rise significantly higher than their assets, this ability could deteriorate,” Kobeissi Letter warned in a Feb. 25 X thread.

First, $MSTR‘s strategy is largely contingent on the ability to raise additional capital.

In a situation where their liabilities rise significantly higher than their assets, this ability could deteriorate.

However, this doesn’t necessarily mean “forced liquidation.” pic.twitter.com/jWxQT8m5kD

— The Kobeissi Letter (@KobeissiLetter) February 25, 2025

So far, Strategy has spent north of $33 billion buying Bitcoin since 2022 at an average cost of $66,000 per coin. Data from SaylorTracker shows that the firm is sitting on an unrealized profit of around 33%, which equates to just over $11.1 billion.

Given its substantial holdings in BTC, Strategy’s stock price has become a proxy for Bitcoin’s performance and the overall health of the crypto market.

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