Strategy price drops — what’s behind today’s move

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Strategy slides 5.23% today

Highlights

Strategy increased its bitcoin holdings by 855 BTC for $75.3 million, reaching 713,502 BTC with an average purchase price of $76,052 per coin.
The company raised $106.1 million by selling 673,527 Class A shares, increasing dilution by 2.5% and raising the Series A preferred dividend to 11.25% from February 2026.
MSTR trades at $132.33, well below key moving averages, with bearish momentum prevailing and a potential downside risk below $141.55 in the coming week.

Capital structure shifts as bitcoin accumulation deepens amid market volatility

Strategy continues to expand its bitcoin holdings, having acquired 855 BTC for $75.3 million in the past week, bringing total reserves to 713,502 BTC at an average price of $76,052 per coin. To support further purchases and meet dividend commitments, the company sold 673,527 shares of Class A stock for $106.1 million and raised the dividend rate on its Series A Perpetual Stretch Preferred Stock to 11.25% effective February 2026. MicroStrategy also reported a $1.44 billion cash reserve as of December to cover interest and preferred dividends, while recent share dilution has reduced bitcoin ownership per share by about 2.5%. These measures come as the company navigates ongoing pressure from bitcoin price declines and volatility in related equities.

Anton Kharitonov, expert at Traders Union, believes MicroStrategy is facing entrenched bearish momentum. He notes the stock trading well below all major moving averages, with technical signals pointing to oversold conditions but no relief in sight. The dilution from equity sales and a heavier dividend burden weaken the fundamental case. Recent volatility and persistent downside in both price and indicators reinforce a defensive outlook. "The risk of deeper losses remains high unless MSTR breaks above $145.55 with conviction," Kharitonov warns.

Viktoras Karapetjanc, expert at Traders Union, sees MicroStrategy’s ongoing bitcoin acquisitions as a strategic build toward future growth. He emphasizes the company’s strong cash reserve and proactive dividend management, providing flexibility. Despite current headwinds from bitcoin’s volatility, Karapetjanc notes long-term bullish structure remains supported by bold accumulation moves. "Current challenges offer upside setups for patient investors willing to look past near-term volatility," he states.

Downside momentum persists as technical signals confirm oversold selling

Momentum signals remain bearish, with the MACD and ADX both supporting the downtrend. RSI, Stoch RSI, and CCI all point to oversold conditions, while BBP suggests that sellers dominate intraday momentum. The Awesome Oscillator confirms the negative trend. The stock dropped $7.30 or 5.23% today, with only a negligible gap at the open. The price is presently near the session’s low of $132.27 amid high volatility, reinforcing the tone of sustained selling pressure throughout the day. Intraday price action and momentum indicators are aligned, confirming strong downside momentum. Previously it was reported that Strategy Incorporated is trading well below all key moving averages amid persistent bearish momentum, with technical indicators such as RSI, MACD, and ADX signaling oversold conditions and strong selling pressure. The price is expected to consolidate within a narrow range near support levels, with significant resistance overhead and a very low probability of a near-term rebound.

Source of Data: MSTR Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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