Strategy Inc shares hit their lowest level since September 2024 as Bitcoin crashed below $68,000, leaving the company's massive crypto holdings $630 million underwater and prompting analysts to slash price targets.
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Key Points
Strategy Inc shares hit a new 52-week low of $111.27 as Bitcoin tumbled below $68,000, down over 7% in 24 hours.
The company's 713,502 Bitcoin holdings are now $630 million underwater, with Bitcoin trading below Strategy's $76,037 average cost basis.
Canaccord slashed its price target by roughly 60% from $474 to $185, though maintaining a Buy rating ahead of today's earnings report.
The crypto market is in "Extreme Fear" mode with the CMC Crypto Fear and Greed Index at just 11.
Strategy Inc (MSTR) is having the kind of day that makes you wonder if maybe putting all your eggs in one basket wasn't the best idea—especially when that basket is filled with Bitcoin.
The stock plunged to a new 52-week low on Thursday, hitting $111.27 as Bitcoin crashed below $68,000. It's a brutal reminder that when you're the world's largest corporate Bitcoin holder, your fortunes rise and fall with the crypto market. And right now, that market is falling hard.
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Bitcoin's Bad Day Becomes Strategy's Worse Day
Bitcoin (BTC) dropped to $67,850 on Thursday, down 7.42% in the last 24 hours. The cryptocurrency has tumbled from recent highs, and the panic is real—the CMC Crypto Fear and Greed Index hit 11, signaling "Extreme Fear" across the market, according to CoinMarketCap data.
For Strategy, which holds 713,502 Bitcoin worth approximately $53.6 billion, this creates a particularly uncomfortable situation. The company is now $630 million underwater on its Bitcoin position, with prices falling below Strategy's $76,037 average cost basis. That's the kind of red ink that gets everyone's attention.
Adding to the volatility: Strategy is scheduled to report fourth-quarter earnings today, which analysts say could be amplifying this week's wild price swings.
Analysts Slash Targets But Stay Optimistic
Canaccord analyst Joseph Vafi made waves by cutting Strategy's price target from $474 to $185—a roughly 60% haircut. That's the kind of revision that makes you do a double-take. Yet he's maintaining a Buy rating, citing optimism about the company's long-term prospects despite the current chaos.
The broader analyst community still sees upside, with Strategy carrying a Buy rating and an average price target of $463.53. Recent moves include Mizuho lowering its target to $403 on January 16 and TD Cowen cutting to $440 on January 15.
The Price Action
Strategy shares closed at $114.70 on Thursday, down 11.15%—their lowest level since September 2024. For a stock that's essentially a leveraged bet on Bitcoin, days like this are part of the deal. The question is whether investors still believe in the thesis when the trade turns against them.
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