Shares in Strategy (MSTR) Dropped Today Hit by Volatility in the Bitcoin Price

Bitcoin's Ups and DownsMSTR stock was down in pre-market trading on Friday, March 7 as Bitcoin slid first well below, then just above, and then once again just off its key support threshold of $90000.

Shares in Strategy (MSTR) slid on Friday as Bitcoin slid first well below, then just above, and then once again just off its key support threshold of $90,000 in pre-market trading.

Bitcoin’s Ups and Downs

MSTR stock was down in pre-market trading on Friday, March 7 as Bitcoin slid first well below, then just above, and then once again just off its key support threshold of $90,000 in pre-market trading.

Whatever the ups and downs of the cryptocurrency it is still far away from the just over $109,000 all-time high it reached on President Donald Trump’s inauguration in January.

However, it was the actions of the President today which led to the, initial at least, battering of Bitcoin. Trump signed an executive order to establish a strategic reserve of cryptocurrencies. That wasn’t as positive as first hoped as he used tokens already owned by the government, disappointing many investors who had hoped for a firm plan to buy new tokens. It is understood that the U.S. government owns about 200,000 bitcoin.

Despite the government keeping open the possibility that it could buy Bitcoin in the future, it doesn’t look like it is coming anytime soon. “This is the most underwhelming and disappointing outcome we could have expected for this week,” Charles Edwards, founder of bitcoin-focused hedge fund Capriole Investments, wrote on X.

Price is Crucial for Strategy

But it wasn’t just the executive order – ongoing tariff and general economic fears also continued to play their part in the softening in demand for cryptocurrency.

Most Bitcoin dips spell bad news for Strategy, recently known as MicroStrategy, because it is the largest corporate holder of Bitcoin in the world and, as such, its stock price has run in parallel with the currency in recent months. Its price has suffered as a result, given the volatility inherent in cryptocurrency trading. In the last three months, its stock is down 17%.

Is MSTR a Good Stock to Buy Now?

On TipRanks, MSTR has a Strong Buy consensus based on 11 Buy ratings. Its highest price target is $650. MSTR stock’s consensus price target is $548.91 implying an 80.50% upside.

See more MSTR analyst ratings