-7.90% for MSTR stock as convertible note buyback may pressure liquidity

Traders Union
All News
Financial News
Strategy drops 7.90% to $163.40 today

Highlights

Strategy expanded its Bitcoin position to 843,738 BTC with a $2.01 billion purchase funded by equity sales, increasing dilution risk for existing shareholders.
Leadership signaled a possible future Bitcoin sale to support dividends or shareholder value, introducing uncertainty to its treasury stance.
MSTR faces bearish near-term pressure, with a projected trading range of $155–$175 and elevated probability of further downside.

Treasury flexibility and buyback plans drive shareholder uncertainty

Strategy completed the purchase of 24,869 bitcoin for roughly $2.01 billion, increasing its total bitcoin holdings to 843,738 BTC as of May 17, 2026. The acquisition was funded by at-the-market offerings, including the sale of 19.5 million STRC preferred shares for $1.949 billion and 430,344 MSTR common shares for $83.7 million, resulting in a larger equity float that could pressure existing shareholders. In a policy shift, executive chairman Michael Saylor acknowledged the company may consider selling part of its Bitcoin holdings to support shareholder value or dividend payments, introducing new uncertainty into Strategy’s treasury approach. Additionally, the firm agreed to repurchase $1.5 billion face value of its 2029 zero-coupon convertible notes for approximately $1.38 billion, with potential funding to come from cash, equity, or Bitcoin sales.

Mixed momentum and volatile price action set technical tone

Technical analysis highlights distinct price levels: MSTR is trading below its MA-20 at $177.05, while maintaining support above the MA-50 at $152.14; long-term resistance is visible at the MA-200 ($218.01). The Ichimoku Kijun on the daily chart stands at $161.02, representing a near-term resistance point just above the spot level. Momentum signals are mixed: MACD points to strong upward momentum, but the ADX indicates the trend strength is limited. RSI remains positive, with Stoch RSI showing oversold conditions; CCI is neutral, and BBP is classified as overbought on daily, whereas intraday timeframes primarily reflect seller dominance. The Awesome Oscillator does not indicate clear trend direction. Notably, today’s opening gap and persistent decline underscore elevated volatility and a bias toward selling pressure in the short term.

Range-bound trading expected amid position adjustments

Over the next five sessions, typical volatility is likely to keep MSTR within a $155 to $175 range as participants adjust positions. An upward scenario requires a move through $175, targeting possible resistance near $180 if momentum reverses. Conversely, a breach below $155 may expose the stock to additional downside, with the next substantial support area positioned just above the MA-50, near $152.

Viktoras Karapetjanc, expert at Traders Union, notes that Strategy’s aggressive Bitcoin acquisition and equity funding significantly deepen its link to digital assets. He believes the firm’s move to potentially sell Bitcoin for dividends may shift sentiment and add uncertainty around future financial strategy. While near-term selling pressure is visible, the analyst sees robust institutional commitment and a strong chance for long-term value. "If MSTR can hold above $155 and sentiment stabilizes, the groundwork is set for a renewed rally toward $175 and beyond."

Earlier, analysts noted that BlackRock’s increased stake in Strategy underscored sustained institutional interest in the company as a leading public proxy for Bitcoin exposure. Strategy’s new flexibility around potential Bitcoin sales to support shareholder value introduces a fresh variable for market participants, with volatility expected to remain elevated as the $155 support zone is tested in the coming sessions.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.