Strategy Stock Plunges 4% Amid Bitcoin Slump and Rate Hike Fears

Strategy Inc's stock (MSTR) suffered a decline of nearly 4% on Monday, despite its price target being raised to $179 from $175 by Canaccord.

The drop in MSTR was largely attributed to the decline of Bitcoin, which fell below the $80,000 level and closed at around $79,116, down over 1.5%. As a leveraged Bitcoin play, MSTR is highly sensitive to changes in the cryptocurrency's price.

The US jobs report released on Friday showed a stronger-than-expected increase of 162,000 new jobs in August, which raised the odds of further rate hikes and put pressure on risk assets, including crypto and crypto-linked stocks.

Strategy's announcement that it had doubled its Digital Credit Securities Repurchase Program to $2 billion may have seemed positive at first glance, but it only applies to STRC preferred stock, not MSTR common stock. As a result, ordinary shareholders did not benefit from the buyback.

From a technical standpoint, MSTR is trading just below its 200-day moving average of $139.09, which is acting as overhead resistance and limiting any potential recovery attempt. Oscillators are also showing overbought signals, indicating a risk of further short-term weakness.