Wall Street Remains Bullish on Strategy Despite Stock Price Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 10 2025
0mins
Wall Street maintains a bullish outlook on Strategy despite recent volatility, while bitcoin miners increasingly diversify into artificial intelligence to offset sector headwinds. New data reveals a structural maturation in the asset class, that bitcoin settlement volumes have surpassed major credit card networks, and institutional funds now control nearly 7% of the total supply. Stay up on the crypto news that matters with "Crypto Currents," daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio, Also, subscribe to ourfor the Crypto Fly By weekly recap.ANALYSTS RETAIN CONVICTION IN STRATEGY DESPITE PULLBACK:Despite a punishing 60% drop in share price that wiped out $73B in value, Wall Street analysts are refusing to quit on Strategy., 15 of the 19 analysts covering the bitcointreasury firm maintain buy ratings, with a median price target of $485, implying a potential 150% upside. The bullish thesis relies on a rebound in bitcoin prices boosting the company's massive holdings. Analysts note the upside potential stands out even compared to high-growth firms like Viking Therapeuticsand Aurora Innovation. However, S&P Globalrecently assigned the firm a junk credit rating, and some analysts see competition from new digital asset treasuries diluting Strategy's premium.MINERS FACE "CRYPTO WINTER" SQUEEZE AS AI PIVOT GAINS URGENCY:A severe downturn has pushed bitcoin miners to the brink of unprofitability, prompting an urgent acceleration toward artificial intelligence infrastructure to ensure survival., a record low "hash price" has left total expenses exceeding revenue for most public operators, with the break-even cost for many firms climbing well above bitcoin's recent trading level of approximately $92,000. The divergence has forced a fundamental shift in the sector; while companies face a "grim" Q4 in mining, firms like IREN (IREN) have seen shares surge fourfold this year by securing high-performance computing contracts. As H.C. Wainwright notes, investor interest has effectively decoupled from bitcoin production, rewarding only those miners like Bitfarmsand Core Scientificthat are successfully converting power capacity into data centers for hyperscalers like Microsoftand Google.BITCOIN FLIPS VISA VOLUME, STRIVE AND KINDLYMD TAP MARKETS FOR CAPITAL:Bitcoin is cementing its role as a global settlement layer. Over the last 90 days, the network processed $6.9T in settlement volume, surpassing both Visa's$4.25T and Mastercard's$2.63T. This utility is driving traditional finance integration.Corporations are leveraging capital markets to fund aggressive digital asset accumulation. Strive, which is acquiring Semler Scientific,to fund further bitcoin purchases. Separately, CoinDesk notes that KindlyMDIn related news, American Bitcoinincreased their bitcoin holdings to 4,783 bitcoin.TENX LISTS ON TSXV AND SUPERSTATE LAUNCHES ISSUANCE:New infrastructure players are entering the public markets. TenX Protocols has begun trading on the TSX Venture Exchange after raising nearly $24M.the company, backed by HIVE Digital, plans to stake tokens across networks like Solana, Sui, and Sei.PRICE ACTION:As of time of writing, bitcoin was trading at $92,399.17, while ether was trading at $3,372.32,.
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Analyst Views on MSTR
Wall Street analysts forecast MSTR stock price to rise
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 93.390
Low
229.00
Averages
453.17
High
705.00
Current: 93.390
Low
229.00
Averages
453.17
High
705.00
About MSTR
Strategy Inc. is a bitcoin treasury and business intelligence company. The Company provides cloud-native, artificial intelligence (AI)-powered enterprise analytics software to thousands of global customers. Its Software Business segment is engaged in the design, development, marketing, and sales of enterprise analytics software platform through cloud subscriptions and licensing arrangements and related services. Its Strategy ONE platform provides access to AI-powered workflows, unlimited data sources, cloud-native technologies, and performance to speed up time from data to action. Strategy One delivers visualization, reporting, and embedded analytics capabilities across retail, banking, technology, manufacturing, insurance, consulting, healthcare, public sector, and others. Its Strategy Mosaic is a universal intelligence layer that provides enterprises with consistent definitions and governance across data sources, regardless of where that data resides or which tools access it.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Strategy Revamps Capital Markets Strategy with Bitcoin Sales Authorization
- Bitcoin Sales Authorization: Strategy has announced the ability to sell up to $1.25 billion worth of Bitcoin, marking a shift from its previous stance of never selling Bitcoin, despite a 43% drop in stock price during the first half of 2026 amid bearish market sentiment.
- Digital Credit Capital Framework: The newly established dollar reserve must equal at least 12 months of annual dividend payments and interest expenses, indicating the company's focus on maintaining financial stability while prioritizing growth in Bitcoin per share.
- Share Buyback Plan: The company has authorized $1 billion in common and preferred stock repurchases, aiming to enhance shareholder value through capital market transactions, even as it faces challenges from declining Bitcoin prices.
- Market Adaptability: Strategy has expanded its capital markets playbook to respond quickly to market changes, and while investors are critical of its new strategy, history suggests that bear markets can evolve into bull markets, indicating significant long-term potential.
See More
SpaceX Set to Join Nasdaq-100 Index, Implications for Investors
- Inclusion in Nasdaq-100: Space Exploration Technologies (NASDAQ: SPCX) is set to officially join the Nasdaq-100 index on July 7, marking a significant step toward mainstream recognition beyond technology investors, although historical data indicates that index inclusion does not necessarily drive sustained outperformance.
- Surge in Trading Volume: Prior to joining the Nasdaq-100, stocks typically experience pronounced buying activity that amplifies trading volume and valuation multiples, particularly from momentum traders and growth funds; however, such temporary inflows often fail to establish a permanent valuation floor.
- Future Performance Dependent on Fundamentals: While SpaceX is buoyed by pre-inclusion enthusiasm from retail investors and mechanical buying from ETFs, its future stock performance will hinge on consistent progress in areas such as Starlink subscriber growth, launch cadence, and emerging AI infrastructure business.
- Caution for Investors: Although index membership enhances liquidity and credibility, investors should focus on SpaceX's operational milestones and cash flow trajectory rather than the temporary tailwind of capital inflows, as many recent Nasdaq-100 additions have shown disappointing long-term performance.
See More
SpaceX Set to Join Nasdaq-100 Index, Implications Ahead
- Significance of Inclusion: SpaceX is set to join the Nasdaq-100 on July 7, marking a significant step towards broader market recognition beyond tech investors, although historical trends indicate that index inclusion rarely serves as an independent driver of sustained outperformance.
- Surge in Trading Volume: Anticipation of the inclusion is expected to amplify trading volume, particularly as momentum traders and growth funds engage, potentially boosting SpaceX's stock price in the short term, though such effects are often temporary.
- Historical Case Studies: For instance, Peloton saw its shares surge nearly 400% post-inclusion in 2020, only to plummet 83% as pandemic tailwinds faded, highlighting the volatility often associated with index membership and the need for investor caution.
- Future Outlook: The sustainability of SpaceX's stock price will depend on its continued progress in Starlink subscriber growth, launch cadence, and AI infrastructure business; if quarterly updates fall short of market expectations, the stock could face profit-taking risks.
See More
Strategy Company Implements Major Strategic Shift Amid Bear Market
- Significant Price Fluctuation: Strategy's shares peaked at $473.83 in November 2024 but plummeted to $93.39 by July 1, 2026, highlighting investor concerns regarding the cryptocurrency market and the challenges faced by the company.
- Strategic Framework Update: On June 29, CEO Michael Saylor announced a new digital credit capital framework requiring the company to maintain a U.S. dollar reserve equal to at least 12 months of annual dividend and interest payments, demonstrating the company's adaptability in the current market environment.
- Bitcoin Sale Authorization: For the first time, Strategy authorized the sale of up to $1.25 billion in Bitcoin, marking a shift from its previous stance of never selling Bitcoin, aimed at enhancing investor returns through flexible capital market transactions.
- Market Adaptability: Despite the decline in Bitcoin prices, Strategy remains committed to increasing Bitcoin per share and prioritizing dividend payments on its preferred equity, reflecting its determination to survive and thrive in an uncertain market.
See More
MicroStrategy CEO Calls Bitcoin 'United States of Money'
- Bitcoin's Value Proposition: MicroStrategy CEO Phong Le describes Bitcoin as the 'United States of money,' emphasizing its transparent rules and fixed supply, arguing that it protects wealth from inflation and political pressure, showcasing its potential as a global reserve asset.
- Personal Investment Returns: Le purchased 11,000 shares of Stretch preferred stock (STRC) through his family trust at a weighted average price of approximately $90.80 per share, investing nearly $1 million, and this investment has now returned to break-even, reflecting his long-term confidence in the company's stock.
- Dividend Enhancement Strategy: MicroStrategy has increased the annual dividend on STRC from 9% to 12% to maintain its $100 par value, aiming to bolster investor confidence and fund dividends through a new Bitcoin sales policy, thereby strengthening its market position.
- Market Response and Competition: While Le's optimistic view on Bitcoin aligns with his role as the largest corporate Bitcoin holder, Bitwise notes that MicroStrategy is no longer the dominant buyer of Bitcoin, and competitors continue to accumulate Bitcoin amid price declines, leaving the market outlook uncertain.
See More
Nvidia vs. Strategy: A Decade Outlook
- Nvidia's Financial Performance: As of June 30, Nvidia's stock has surged 897% over the past five years, with revenue skyrocketing 1,033% from Q1 2024 to Q1 2027, underscoring its dominance in the AI hardware and software market.
- Significant Profit Growth: Nvidia's net income reached $58.3 billion in the latest fiscal quarter, a staggering 29-fold increase from $2 billion three years ago, reflecting its strong pricing power and a gross margin of 74.9%, further solidifying its competitive edge.
- Strategy's Bitcoin Holdings: As of June 30, Strategy holds 847,363 Bitcoin valued at $49.6 billion, which covers its annual dividend and interest obligations 28 times over; despite its stock being down 82% from peak levels, it still holds substantial upside potential in a bull market.
- Risks and Uncertainties: While Nvidia shows strong performance in AI, it faces risks from customers developing in-house chips, whereas Strategy must navigate uncertainties regarding Bitcoin's long-term adoption, with both companies' future performance heavily influenced by market dynamics.
See More
Strategy Revamps Capital Markets Strategy with Bitcoin Sales Authorization
- Bitcoin Sales Authorization: Strategy has announced the ability to sell up to $1.25 billion worth of Bitcoin, marking a shift from its previous stance of never selling Bitcoin, despite a 43% drop in stock price during the first half of 2026 amid bearish market sentiment.
- Digital Credit Capital Framework: The newly established dollar reserve must equal at least 12 months of annual dividend payments and interest expenses, indicating the company's focus on maintaining financial stability while prioritizing growth in Bitcoin per share.
- Share Buyback Plan: The company has authorized $1 billion in common and preferred stock repurchases, aiming to enhance shareholder value through capital market transactions, even as it faces challenges from declining Bitcoin prices.
- Market Adaptability: Strategy has expanded its capital markets playbook to respond quickly to market changes, and while investors are critical of its new strategy, history suggests that bear markets can evolve into bull markets, indicating significant long-term potential.
See More
SpaceX Set to Join Nasdaq-100 Index, Implications for Investors
- Inclusion in Nasdaq-100: Space Exploration Technologies (NASDAQ: SPCX) is set to officially join the Nasdaq-100 index on July 7, marking a significant step toward mainstream recognition beyond technology investors, although historical data indicates that index inclusion does not necessarily drive sustained outperformance.
- Surge in Trading Volume: Prior to joining the Nasdaq-100, stocks typically experience pronounced buying activity that amplifies trading volume and valuation multiples, particularly from momentum traders and growth funds; however, such temporary inflows often fail to establish a permanent valuation floor.
- Future Performance Dependent on Fundamentals: While SpaceX is buoyed by pre-inclusion enthusiasm from retail investors and mechanical buying from ETFs, its future stock performance will hinge on consistent progress in areas such as Starlink subscriber growth, launch cadence, and emerging AI infrastructure business.
- Caution for Investors: Although index membership enhances liquidity and credibility, investors should focus on SpaceX's operational milestones and cash flow trajectory rather than the temporary tailwind of capital inflows, as many recent Nasdaq-100 additions have shown disappointing long-term performance.
See More
SpaceX Set to Join Nasdaq-100 Index, Implications Ahead
- Significance of Inclusion: SpaceX is set to join the Nasdaq-100 on July 7, marking a significant step towards broader market recognition beyond tech investors, although historical trends indicate that index inclusion rarely serves as an independent driver of sustained outperformance.
- Surge in Trading Volume: Anticipation of the inclusion is expected to amplify trading volume, particularly as momentum traders and growth funds engage, potentially boosting SpaceX's stock price in the short term, though such effects are often temporary.
- Historical Case Studies: For instance, Peloton saw its shares surge nearly 400% post-inclusion in 2020, only to plummet 83% as pandemic tailwinds faded, highlighting the volatility often associated with index membership and the need for investor caution.
- Future Outlook: The sustainability of SpaceX's stock price will depend on its continued progress in Starlink subscriber growth, launch cadence, and AI infrastructure business; if quarterly updates fall short of market expectations, the stock could face profit-taking risks.
See More
Strategy Company Implements Major Strategic Shift Amid Bear Market
- Significant Price Fluctuation: Strategy's shares peaked at $473.83 in November 2024 but plummeted to $93.39 by July 1, 2026, highlighting investor concerns regarding the cryptocurrency market and the challenges faced by the company.
- Strategic Framework Update: On June 29, CEO Michael Saylor announced a new digital credit capital framework requiring the company to maintain a U.S. dollar reserve equal to at least 12 months of annual dividend and interest payments, demonstrating the company's adaptability in the current market environment.
- Bitcoin Sale Authorization: For the first time, Strategy authorized the sale of up to $1.25 billion in Bitcoin, marking a shift from its previous stance of never selling Bitcoin, aimed at enhancing investor returns through flexible capital market transactions.
- Market Adaptability: Despite the decline in Bitcoin prices, Strategy remains committed to increasing Bitcoin per share and prioritizing dividend payments on its preferred equity, reflecting its determination to survive and thrive in an uncertain market.
See More
MicroStrategy CEO Calls Bitcoin 'United States of Money'
- Bitcoin's Value Proposition: MicroStrategy CEO Phong Le describes Bitcoin as the 'United States of money,' emphasizing its transparent rules and fixed supply, arguing that it protects wealth from inflation and political pressure, showcasing its potential as a global reserve asset.
- Personal Investment Returns: Le purchased 11,000 shares of Stretch preferred stock (STRC) through his family trust at a weighted average price of approximately $90.80 per share, investing nearly $1 million, and this investment has now returned to break-even, reflecting his long-term confidence in the company's stock.
- Dividend Enhancement Strategy: MicroStrategy has increased the annual dividend on STRC from 9% to 12% to maintain its $100 par value, aiming to bolster investor confidence and fund dividends through a new Bitcoin sales policy, thereby strengthening its market position.
- Market Response and Competition: While Le's optimistic view on Bitcoin aligns with his role as the largest corporate Bitcoin holder, Bitwise notes that MicroStrategy is no longer the dominant buyer of Bitcoin, and competitors continue to accumulate Bitcoin amid price declines, leaving the market outlook uncertain.
See More
Nvidia vs. Strategy: A Decade Outlook
- Nvidia's Financial Performance: As of June 30, Nvidia's stock has surged 897% over the past five years, with revenue skyrocketing 1,033% from Q1 2024 to Q1 2027, underscoring its dominance in the AI hardware and software market.
- Significant Profit Growth: Nvidia's net income reached $58.3 billion in the latest fiscal quarter, a staggering 29-fold increase from $2 billion three years ago, reflecting its strong pricing power and a gross margin of 74.9%, further solidifying its competitive edge.
- Strategy's Bitcoin Holdings: As of June 30, Strategy holds 847,363 Bitcoin valued at $49.6 billion, which covers its annual dividend and interest obligations 28 times over; despite its stock being down 82% from peak levels, it still holds substantial upside potential in a bull market.
- Risks and Uncertainties: While Nvidia shows strong performance in AI, it faces risks from customers developing in-house chips, whereas Strategy must navigate uncertainties regarding Bitcoin's long-term adoption, with both companies' future performance heavily influenced by market dynamics.
See More
