Strategy Stock Drops More Than 7% as Bitcoin Pulls Back

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.