Strategy Stock Slides Amid Weakening Bitcoin and Rising Rate Hopes

Strategy stock fell nearly 3.9% in morning trading today, reaching $137.30 as its value tracks closely with Bitcoin's price. The cryptocurrency dropped below the psychologically important $80,000 level on Monday, closing at $79,116 and marking a decline of over 1.5%. This fall directly impacted Strategy shares.

The primary macro headwind was the blowout US August employment report, which showed 162,000 new jobs created against expectations of roughly 55,000. The strong labor data sent rate-hike probabilities higher, pressuring risk assets across the board and weighing on Strategy's equity.

Strategy announced a doubling of its Digital Credit Securities Repurchase Program from $1 billion to $2 billion, but this buyback covers only STRC preferred shares, not MSTR common stock. This move offered no direct cushion for ordinary shareholders.