Strategy Inc Shares Drop 7% Amid Fresh Equity Issuance and Bitcoin Pullback
Strategy Inc's (NASDAQ:MSTR) shares dropped over 7% on Friday as investors weighed fresh equity issuance and a pullback in Bitcoin's price. The decline follows Strategy's latest capital-raise update tied to its Bitcoin treasury strategy.
The company raised $2 billion through stock sales last week as Bitcoin surged by 24%, pushing its 840,447 BTC position back into profit. Strategy directed the proceeds towards its $5.1 billion USD Reserve, a new USD Cash liquidity pool, and preferred-share repurchases.
Bernstein recently lowered its MSTR price target to $350 while maintaining a Bitcoin bull case of $500,000 by 2029. Its base case calls for Bitcoin to reach $125,000 by the end of 2026 and $150,000 by mid-2027.
The stock is trading 28.6% above its 20-day SMA of $104.78, but remains 4.9% below its 200-day SMA of $141.60. RSI stands at 72.66, indicating that the recent rally may be vulnerable to a pullback or consolidation.