MSTR Stock Falls Over 3% In Friday Pre-Market: What's Going On?

In Friday’s pre-market trading, Strategy MSTR saw a 3.18% dip in its stock, following a 7% decrease in Bitcoin‘s BTC/USD value over the past day, according to Benzinga Pro.

What Happened: The shares of Strategy, which recently added nearly $2 billion worth of Bitcoin to its portfolio, fell during today’s pre-market session after Bitcoin declined 7% over the past 24 hours and nearly 20% over the past seven days. The cryptocurrency slipped below $80,000, marking nearly a 25% fall from its all-time high.

Despite the company’s aggressive Bitcoin accumulation strategy significantly boosting its stock market capitalization, critics question the long-term viability of this approach. Peter Schiff, a prominent economist and market commentator, criticized the company’s debt-fueled bitcoin purchases, pointing out the company’s declining share price and the shrinking Net Asset Value premium.

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Why It Matters: Bitcoin’s recent decline has sparked debates among traders about the end of the bull market. Crypto chart analyst Ali Martinez noted that Bitcoin has entered oversold conditions for the first time since August 2024, a period followed by a 33% rebound. This sparks concern for Strategy, which has a Bitcoin holding worth nearly $ 43 billion, making it a major corporate holder of the cryptocurrency.

Strategy stock plunged nearly 50% from its all-time high of $473.83 on Nov. 21. On Monday, Barclays lowered their target price on MSTR from $515.00 to $421.00 and set an “overweight” rating on the stock.

Last week, Strategy's co-founder Michael Saylor met with the SEC's Crypto Task Force to discuss potential regulatory reforms while protecting crypto holders’ rights. He also presented his strategic Bitcoin reserve plan to the SEC, aiming to generate between $16 billion to $81 trillion in wealth for the U.S. Treasury.

• READ MORE: Bitcoin, Ethereum Lose, Dogecoin Gains Amid Trump’s Tariff War Moves: Has BTC Hit A Bottom Yet?

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.