Key Highlights
- Strategy (MSTR) stock fell about 7% to around $85.81, marking its 11th straight month of losses.
- Bitcoin dropped about 3.41% to roughly $58,333, and has fallen nearly 50% over the past year, pulling MSTR down with it.
- TD Cowen cut its price target from $400 to $260 but kept a “Buy” rating, saying the change is due to weaker Bitcoin expectations, not the company itself.
Strategy Inc, formerly MicroStrategy, continued to fall hard in the market as its stock dropped to $85 today, marking its eleventh consecutive month of losses.
At the time of this writing, the stock was trading for $85.81, down 7.41% over the past 24 hours. The decline came as Bitcoin also fell 3.41% over the same period to around $58,333.
This matters because Strategy’s stock is closely tied to Bitcoin. The company has built its entire plan around buying and holding Bitcoin, so when Bitcoin goes down, its stock usually follows the same direction.
Over the past year, the stock has fallen about 79%, even after reaching a high of around $540 in November 2024. However, an analyst from TD Cowen, an investment bank, maintained a “Buy” rating, indicating it still expects the stock to rise from current levels, though with less upside than before.
TD Cowen cuts target but stays bullish
TD Cowen reportedly reduced its price target for Strategy from $400 down to $260, but it still kept a “Buy” rating on the stock.
Analyst Lance Vitanza explained that the change is mainly because of updated expectations for Bitcoin’s price, not because the company itself has changed direction. He described it simply, saying the stock still goes up, just “less higher than before.” This means analysts still see room for growth, but not as much as they expected earlier in the year.
The adjustment aligns with other research notes that have moved expectations closer together around the mid-$200 range as Bitcoin forecasts weaken across the market.
Other research firms have made similar moves. Some have set their targets in the $260 to $265 range, indicating that many analysts are now thinking in the same direction. These changes all connect back to Bitcoin’s weaker price outlook, since Strategy’s value depends heavily on where Bitcoin goes.
Funding strategy comes under spotlight
Meanwhile, Strategy has been adjusting its financial structure. The company has adjusted its funding approach through its Digital Credit Capital Framework, which allows it to raise up to $1.25 billion.
This money can be used for things like maintaining cash reserves, paying dividends, or even buying back shares. The company has also paused some Bitcoin buying and sold about $1.15 billion worth of shares to support its financial plans. At the same time, it still holds a very large amount of Bitcoin, about 847,363 BTC, after a recent purchase of 520 BTC at around $67,068 each.
Another concern for investors is that Strategy’s market value compared to its Bitcoin holdings, known as mNAV, has fallen below 1.0. This makes it harder for the company to issue new shares without hurting existing investors. It also raises questions about how long the company can keep its aggressive Bitcoin strategy if market conditions stay weak.
Overall market pressure builds
Overall, Strategy remains closely tied to Bitcoin’s price movement, and every rise and fall in crypto prices continues to shape its stock performance in a very direct way.
In June alone, Strategy shares fell about 44%, marking their worst monthly performance since 2022. Over the past 12 months, the stock has declined roughly 79%, down from an all-time high near $540 recorded in November 2024. At the same time, data from CoinMarketCap shows that Bitcoin has fallen nearly 50% since October, adding pressure to Strategy’s valuation model.
Also Read: Bitcoin Price Stabilizes at $60K Amid Cooling Volumes and Liquidations – Capitulation or Pause?
