Strategy Stock Dives 7% as Bitcoin Retreats
Strategy Inc. (NASDAQ: MSTR) stock plummeted by more than 7% on Friday after hitting its highest level in three months, reaching an intraday peak of $139.78. The decline came despite the company's treasury operations generating modest revenue compared to the mark-to-market swings on its bitcoin position.
The stock had closed Thursday at $137.40, with a session high of $135.97 failing to hold as sellers emerged after the prior day's breakout. The sharp Friday reversal erased a sizable portion of Thursday's gains and left MSTR well above its 20-day and 50-day moving averages but still below the 200-day average near $142.
The company's business remains dominated by its bitcoin position, with Strategy holding approximately 840,447 bitcoin. The recent capital raise, which generated about $2.01 billion in proceeds, increased the share count and created an overhang that traders cited as Friday selling accelerated.