Strategy Stock Price Loses A Quarter Of Its Value In Five Days As Bitcoin Dives Below $90K

Shares of Bitcoin investor Strategy plummeted 11% in the last 24 hours and almost 26% in the past five days, hammered by Bitcoin’s nosedive below $90,000 and a broader crypto market rout.

After a 3% drop in the past 24 hours, Bitcoin trades at $88,464.63 as of 1:02 a.m. EST. The king of cryptos has slumped 7% in the past week.

Crypto Market Crash

Strategy Stock Price Tumbles Amid Broader Crypto Market Correction

Some investors saw MSTR’s pullback as an opportunity to buy the dip, leading to the firm’s share price climbing over 1% in after-hours trading.

Despite the correction, some analysts are still bullish on MSTR. Among them are analysts at stock researcher Benchmark, who raised their price target for MSTR to $650 on Feb. 6. It closed yesterday at $250.51

Some Question The Sustainability Of Strategy’s Bitcoin Accumulation 

The sudden drop in MSTR’s price over the past 24 hours has led some analysts to question the sustainability of Strategy’s Bitcoin buying spree.

According to market Analysis firm Kobeissi Letter, the company’s Bitcoin accumulation strategy “is largely contingent on the ability to raise additional capital” backed by its growing Bitcoin treasury. 

“In a situation where their liabilities rise significantly higher than their assets, this ability could deteriorate,” Kobeissi Letter warned in a Feb. 25 X thread.

So far, Strategy has spent north of $33 billion buying Bitcoin since 2022 at an average cost of $66,000 per coin. Data from SaylorTracker shows that the firm is sitting on an unrealized profit of around 33%, which equates to just over $11.1 billion.

Given its substantial holdings in BTC, Strategy’s stock price has become a proxy for Bitcoin’s performance and the overall health of the crypto market.

Related Articles:

  • Grok 3 And ChatGPT Pick The Best Crypto To Buy
  • Citadel Securities CEO Ken Griffin Targets Crypto Market
  • Circle’s USDC and EURC Gain Regulatory Approval in Dubai

Comments

Post a Comment

Popular posts from this blog

Solana adds $12 billion ahead of ETF ‘imminent launch’

Image
Solana (SOL) is experiencing a steady inflow of capital as anticipation builds around the launch of the first-ever Solana staking exchange-traded fund (ETF) in the United States. Over the past week, Solana’s market capitalization has increased by $12.23 billion, rising from $68.32 billion to $80.55 billion, representing a 17.9% rise. Solana one-week market cap chart. Source: CoinMarketCap This capital inflow has coincided with a price rally, with SOL trading at $151, up 16% on the week and nearly 1% in the past 24 hours. While the broader crypto market is benefiting from easing geopolitical tensions in the Middle East, Solana’s gains are being significantly driven by optimism surrounding the upcoming ETF. To this end, ETF provider REX Shares is nearing the launch of its REX-Osprey Solana Staking ETF, having reportedly addressed key regulatory concerns with the Securities Exchange Commission (SEC).  The ETF is designed to offer investors expo...
Read more

Wall Street banking giant sets Bitcoin’s price for end of 2025

Image
Wall Street banking giant Citi (NYSE: C) is projecting a bullish outlook for Bitcoin (BTC) by the end of 2025, with its base-case target set at $135,000. According to the bank’s valuation framework, the flagship digital currency could reach $135,000 while a more optimistic outlook sees Bitcoin surging to $199,000. The updated forecast is guided by Citi’s refined model, which emphasizes three main price drivers, including user adoption, macroeconomic conditions, and inflows into spot Bitcoin ETFs. To this end, Citi analysts Alex Saunders and Nathaniel Rupert noted that the core valuation begins with a 20% increase in user growth under a linear network model, supporting a price near $75,000. Macroeconomic headwinds, such as weak equity markets and underperforming gold, are expected to shave off about $3,200.  Impact of ETFs on Bitcoin’s price However, Citi anticipates around $15 billion in net ETF inflows, which could add approximately $63,000 to the mode...
Read more

Robert Kiyosaki warns ‘biggest crash in history’ will be in February

Image
Robert Kiyosaki, author of ‘Rich Dad Poor Dad’ and financial educator, is an influential voice in the realm of personal finance. He is also quite an outspoken market commentator — and never shies away from sharing his takes with investors. As a noted critic of fiat currencies, which he has often referred to as ‘fake money’, it comes as little surprise that Kiyoski is bullish on gold, silver, and cryptocurrencies — particularly Bitcoin (BTC). On the other hand, the author is also quite a controversial figure — often criticized for his incendiary, alarmist rhetoric, as well as the fact that he is approximately $1.2 billion in debt. However, over the course of 2024, Kiyosaki’s portfolio netted an impressive 76.03% return — buoyed primarily by Solana (SOL), Ethereum (ETH), and Bitcoin. Picks for you Funtico launches TICO to bolster gaming ecos...
Read more