Strategy Inc (NASDAQ:MSTR) shares traded lower as investors weighed fresh equity issuance and a pullback in Bitcoin’s price on Friday.
The decline followed Strategy’s latest capital-raise update tied to its Bitcoin treasury strategy.
The pullback comes as crypto bulls highlight MSTR’s 78% correlation with Bitcoin among large-cap crypto stocks. The move suggests investors may be taking some profits following the recent crypto-linked rebound.
Strategy Raises $2 Billion As Bitcoin Position Returns To Profit
Strategy raised $2 billion through stock sales last week as Bitcoin’s 24% surge pushed its 840,447 BTC position back into profit.
In a Monday 8-K, the company said it sold 18.26 million shares between Aug. 17 and Aug. 23. Strategy directed the proceeds toward its $5.1 billion USD Reserve, a new USD Cash liquidity pool, and preferred-share repurchases.
The capital raise puts the trade-off between Bitcoin upside and shareholder dilution back in focus.
Bernstein Sees Bitcoin Upside Despite MSTR Dilution Risk
Bernstein recently lowered its MSTR price target to $350 while maintaining a Bitcoin bull case of $500,000 by 2029.
Its base case calls for Bitcoin to reach $125,000 by the end of 2026 and $150,000 by mid-2027.
That outlook could support MSTR’s longer-term Bitcoin exposure, even as additional stock issuance creates near-term pressure on the shares.
MSTR Technical Setup: RSI Signals A Stretched Rally
MSTR is trading 28.6% above its 20-day SMA of $104.78 and 34.7% above its 50-day SMA of $100.02, reflecting a sharp recent advance.
The stock is also 5.7% above its 100-day SMA of $127.47 but remains 4.9% below its 200-day SMA of $141.60.
RSI stands at 72.66, placing the shares in overbought territory and signaling that the recent rally may be vulnerable to a pullback or consolidation.
- Key Resistance: $136.50 — a nearby pivot where rebounds could encounter selling pressure.
- Key Support: $118.50 — a level to watch if the current pullback deepens.
Analysts Remain Bullish On Strategy
The stock carries a Buy consensus rating with an average price forecast of $228.50.
Recent analyst actions include Bernstein maintaining an Outperform rating while lowering its target to $350 on Aug. 26. Canaccord Genuity maintained a Buy rating and raised its target to $175 on Aug. 25, while B. Riley Securities maintained a Buy rating and lowered its target to $155 on Aug. 3.
MSTR Stock Price Activity: Strategy shares were down 7.74% at $126.77 on Friday, according to Benzinga Pro data.
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