TradingKey – Despite ramping up its Bitcoin (BTC) purchases through a fresh $2 billion capital raise, Strategy (MSTR) continues to face stock price headwinds, largely due to Bitcoin’s sluggish performance.

On Thursday, July 24, Strategy announced it would increase its fundraising target from $500 million to $2 billion, with proceeds earmarked for additional Bitcoin acquisitions.

• The company is issuing $2.5 billion worth of STRC preferred shares, priced at $90 per share, offering a 9% dividend yield.
• Strategy currently holds 607,770 BTC, making it the largest corporate Bitcoin holder globally.

While the fundraising effort signals bullish intent, Bitcoin’s recent price stagnation below $120,000 has dampened investor sentiment.

• BTC has struggled to hold above $115,000, raising concerns of a potential breakdown.
• Since July 17, MSTR stock has declined 9% over five consecutive trading sessions, currently trading around $414, a level offering modest support.
• If BTC continues to slide, analysts warn MSTR could drop toward the next support zone near $360.

 Strategy Stock Price Chart – Source: TradingView

Find out more