Strategy Stock Plunges to 4-Month Low — Further 30% Decline Possible, Analysts Warn
TradingKey – On Tuesday, August 19, shares of Strategy Inc. ( MSTR) — the public company with the largest Bitcoin holdings — fell more than 7%, breaking below the key $350 support level to close at $336, its lowest price since April 2025.
Strategy Stock Price Chart – Source: TradingView
Bitcoin Weakness Drives Equity Sell-Off
The primary driver behind Strategy’s decline is the continued weakness in Bitcoin (BTC). Since peaking at $124,000 on August 14, BTC has dropped to a low of $112,000, marking a 10% drawdown that has weighed heavily on crypto-linked equities.
Policy Shift Sparks Investor Backlash
Adding to the pressure, Strategy recently amended its equity issuance policy. The company now allows new share issuance when its market cap falls below 2.5x its net asset value (mNAV) — a departure from its previous stance of only issuing shares when the stock trades above 2.5x the value of its Bitcoin holdings.
The change triggered backlash among shareholders. Notably, crypto influencer Josh Mandell, who has over 140,000 followers and was considered a vocal supporter of Strategy, announced he had sold all his shares and publicly accused founder Michael Saylor of being “a fraud.”
Outlook: $230 Support in Sight
From a technical analysis perspective, the next major support level for MSTR is around $230, which represents a potential 31% downside from current levels. This price zone previously held firm in February and April, but analysts caution that a break below could signal deeper weakness.
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