The dramatic sell-off in Strategy Inc. shares is gaining momentum, with the stock hitting its lowest point in seven months. This steep decline coincides directly with Bitcoin’s fall below the critical $100,000 threshold for the first time since June, highlighting the company’s profound and risky entanglement with the volatile cryptocurrency.
Accelerating Losses
Recent trading data paints a bleak picture. On Tuesday alone, Strategy’s shares tumbled 6.7%, closing at $246.99. This single-day drop is merely part of a much larger downward spiral. Over the past week, the equity has collapsed by 16.31%, and the monthly performance shows a staggering loss of 29.61%. Since the start of the year, shareholders have watched the value of their investments decline by 14.7%, confirming a powerful and accelerating downtrend.
A High-Stakes Gamble
In a move that has left market observers divided, Strategy is not retreating from its Bitcoin strategy but is instead doubling down. The company continues to acquire more of the digital asset, funding these purchases through aggressive capital-raising initiatives that are adding to investor anxiety.
Key financing measures include:
* Preferred Share Issuance: A plan to issue 3.5 million shares of a new Series A preferred stock.
* Equity Sales: A recent sale of the company’s own shares that raised $69.5 million.
* Immediate Deployment: The proceeds were used to immediately purchase an additional 397 Bitcoins.
Should investors sell immediately? Or is it worth buying Strategy?
This unwavering commitment to accumulating Bitcoin, even as its price falters, raises fundamental questions about whether this is a bold long-term vision or a dangerous speculation.
Wall Street’s Divided Stance
The investment community is sending mixed signals, reflecting deep uncertainty over how to value a company so tightly coupled to crypto markets. While the consensus rating from eight analysts remains a “Strong Buy,” their recent price target adjustments reveal significant confusion.
In early November, Canaccord Genuity raised its price target to $474. Almost simultaneously, Maxim Group reduced its target from $515 to $425, despite maintaining a “Buy” recommendation and praising the firm’s underlying software business. This stark divergence underscores a central problem: as long as Bitcoin dictates Strategy’s trajectory, its true valuation remains a puzzle that Wall Street has yet to solve.
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