Key Notes
- Strategy stock is trading at a huge discount as sentiment remains bearish.
- Wall Street still maintains a Strong Buy consensus on MSTR despite short-term pressure and expected unrealized losses.
- Strategy outlook comes as Bitcoin price dropped to its lowest level since November 2024.
Strategy Inc. stock is facing a selloff in pre-market as investors are anticipating its earnings report and Bitcoin price trading below $70,000. This outlook has raised fresh questions about the value of the company’s large BTC
BTC
$67 084
24h volatility:
10.2%
Market cap:
$1.34 T
Vol. 24h:
$108.40 B
holdings. MSTR stock slipped about 5% ahead of results after a major analyst reduced expectations.
Strategy Stock Falls as Bitcoin Crash Weakens Sentiment
Strategy shares moved lower before its fourth-quarter earnings release, reflecting a wide BTC selloff in the market. Earlier this week, a leading analyst at Canaccord lowered the price target to $185 from $474. This marks one of the sharpest cuts in recent Wall Street forecasts.
The main reason for this revised outlook was the decline in Bitcoin prices. As of writing, Bitcoin is trading at $69,274.19, down 8.92% In the past 24 hours. Coinspeaker reported earlier that Veteran trader Peter Brandt said Bitcoin could drop to $63,800.
This decline directly affects the value of Strategy’s balance sheet because of its heavy exposure to the digital asset. Even with the lower target, Canaccord kept a Buy rating, saying the company still serves as a vehicle for investors who want exposure to Bitcoin without holding the asset directly.
However, sentiment has shifted as investors appear less willing to pay a large premium above the value of the Bitcoin held by the company.
Market participants also expect Strategy to record an unrealized loss for the quarter due to the drop in Bitcoin during the reporting period. This has added to uncertainty ahead of the earnings announcement and explains part of the recent selling pressure.
Earnings Expectations and Wall Street Outlook
It is important to add that the firm expects fourth-quarter revenue of about $119.12 million, a modest increase from last year. Forecasts also point to a much smaller loss of $0.08 per share compared with a loss of $3.03 per share a year earlier. This suggests operational improvement despite market volatility.
Wall Street sentiment remains broadly positive. According to analyst data, Strategy holds a Strong Buy consensus rating, with most analysts maintaining bullish views even after recent price swings. The average price target stands at $437.11, implying significant upside if Bitcoin stabilizes and investor confidence returns.
While the broader market faces a sharp decline, analyst PlanB outlines four bear market scenarios as Bitcoin drawdown expands. Investors are watching for signs of a bottom and possible crypto winter trends.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
