Strategy (MSTR) Stock Falls 4% as Bitcoin Drops Below $80,000
TLDR
- MSTR fell nearly 3.9% in morning trading, touching an intraday low of $135.38
- Bitcoin dropped below $80,000, closing around $79,116, down over 1.5%
- A blowout August jobs report (162,000 vs 55,000 expected) pushed rate-hike odds higher
- Strategy doubled its Digital Credit Securities Repurchase Program to $2 billion, but it covers only STRC preferred stock, not MSTR common stock
- Canaccord raised its MSTR price target to $179 from $175, keeping a Buy rating
Strategy (MSTR) stock dropped close to 4% on Monday, trading at $137.30 in morning sessions before closing at $137.35, down $5.46 or 3.82% on the day.
The intraday low hit $135.38, a long way from the stock’s 52-week high of $365.21.
Bitcoin was the main trigger. The cryptocurrency slipped below the $80,000 level on Monday, closing at around $79,116, down more than 1.5%. Since MSTR is widely treated as a leveraged Bitcoin play, any drop in BTC tends to hit the stock hard.
The macro picture didn’t help either. Friday’s US jobs report showed 162,000 new jobs created in August, well above the 55,000 expected. That kind of beat raises the odds of further rate hikes, which puts pressure on risk assets including crypto and crypto-linked stocks.
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