MSTR stock drops 3.66% as Bitcoin sale to cover dividend obligations weighs on sentiment

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Strategy drops 3.66% to $108.41 today

Highlights

Strategy Inc. acquired 520 bitcoin for $35 million by selling 2.7 million MSTR shares, raising its total holdings to 847,363 BTC.
The company halted new STRC preferred stock issuances, shifted to semi-monthly cash dividends, and saw STRC trade up to 17% below par amid reduced reserves.
MSTR remains under pronounced bearish pressure, trading below key moving averages, with a short-term price range of $97.78–$119.04 and high risk of further downside.

Balance sheet adjustments intensify amid bitcoin acquisitions and funding shifts

Strategy Inc. purchased 520 bitcoin for $35 million, bringing its holdings to 847,363 BTC and increasing USD reserves by $335 million, according to Bitcoinmagazine. The company funded these acquisitions by selling approximately 2.7 million MSTR shares and executed its first standalone bitcoin sale since 2022 to meet preferred dividend obligations, as reported by News and Sg Finance Yahoo. Strategy also halted new issuances of its STRC preferred stock and implemented a transitional semi-monthly cash dividend schedule, while STRC shares traded up to 17% below par amid bitcoin price declines and reduced dividend reserves, as reported by Parameter. These measures reflect ongoing balance sheet adjustments, though price action has remained under broader selling pressure.

Technical barriers and bearish signals reinforce downside momentum in MSTR

On the technical front, MSTR is trading below the MA-20 ($114.9) and MA-50 ($120.46) on the hourly chart, and remains under the MA-200 ($191.84) on the daily timeframe. The Ichimoku Kijun level at $117.9 presents immediate resistance. Momentum indicators further support a bearish setup: MACD and ADX are both on Sell, CCI signals Sell, and BBP confirms seller dominance. The RSI sits at 35.01, approaching oversold territory, while the Stoch RSI is Neutral and Awesome Oscillator aligns with downside momentum.

Limited breakout risk as volatility band contains bearish outlook

Short-term expectations for MSTR are for consolidation within the $97.787–7$119.04 volatility band relative to current levels. The likelihood of an upward breakout remains very low unless $117.9 is decisively breached. Should price fall below $97.78, it would confirm an extension of the current bearish leg.

Viktoras Karapetjanc, analyst at Traders Union, sees Strategy Inc.'s ongoing bitcoin accumulation and active balance sheet management as broadly positive from a fundamental perspective. He believes the company’s decision to reinforce its reserves and maintain dividend commitments demonstrates a clear, long-term strategic focus, even amid persistent selling pressure. Momentum remains weak in the short term, but the company’s macro positioning and disciplined approach could support future upside if sentiment stabilizes. "I remain constructive as long as strategy execution aligns with the company's digital asset vision and fundamental reserves remain strong."

Earlier, analysts noted that Strategy’s substantial bitcoin accumulation and balance sheet maneuvers could be both a long-term strength and a potential vulnerability under changing market conditions. The latest developments — including new acquisitions, equity dilution, and adjustments to preferred dividends against a backdrop of persistent downside momentum — underscore the importance of monitoring the $97.78 support as a key risk level should bearish pressure intensify.

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.