Strategy Stock Slumps as Bitcoin Pulls Back and Analysts Remain Bullish

Strategy Inc's stock dropped more than 7% on Friday as investors weighed fresh equity issuance and Bitcoin's price pullback. The decline followed Strategy's latest capital-raise update tied to its Bitcoin treasury strategy, which saw it raise $2 billion through stock sales last week. This move pushed Strategy's 840,447 BTC position back into profit after Bitcoin surged by 24%.

The company directed the proceeds from the sale 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, which could support MSTR's longer-term Bitcoin exposure despite near-term pressure from additional stock issuance.

MSTR is trading 28.6% above its 20-day SMA and 34.7% above its 50-day SMA, but remains 4.9% below its 200-day SMA. The stock carries a Buy consensus rating with an average price forecast of $228.50, and analysts remain bullish on Strategy despite the recent pullback.