Strategy Inc (NASDAQ:MSTR) shares plunged to a new 52-week low on Thursday as Bitcoin (CRYPTO: BTC) tumbled below $68,000, triggering widespread selling across cryptocurrency-linked equities.
Strategy is scheduled to report fourth-quarter earnings today, which analysts say could be contributing to this week’s volatility.
Sharp Decline In Crypto Markets
Bitcoin dropped below $68,000 on Thursday, trading at $67,850, down 7.42% in last 24 hours. The cryptocurrency has fallen significantly from recent highs, with the CMC Crypto Fear and Greed Index registering 11, indicating “Extreme Fear” in the market, according to data from CoinMarketCap.
Canaccord analyst Joseph Vafi slashed Strategy’s price forecast from $474 to $185 while maintaining a Buy rating. The roughly 60% reduction comes as the stock trades near its lowest levels since September 2024.
Despite the steep cut, Vafi remained optimistic about Strategy’s long-term prospects. The company holds 713,502 Bitcoin valued at approximately $53.6 billion, making it the largest corporate Bitcoin holder.
Underwater Position Emerges
Strategy is now $630 million underwater on its Bitcoin holdings as prices fell below the company’s $76,037 average cost basis, according to a report.
Analyst Consensus & Recent Actions
The stock carries a Buy Rating with an average price target of $463.53. Recent analyst moves include:
- Canaccord Genuity: Buy (Lowers Target to $185.00) (Feb. 4)
- Mizuho: Outperform (Lowers Target to $403.00) (Jan. 16)
- TD Cowen: Buy (Lowers Target to $440.00) (Jan. 15)
MSTR Price Action:
Strategy shares traded at $114.70, down 11.15% on Thursday, hitting a new 52-week low of $111.27, according to Benzinga Pro data.
Photo: T. Schneider / Shutterstock
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