Strategy Signals Fresh Bitcoin Buy As Saylor Tweets ‘Back To Work’
With Bitcoin trading near $69,000, Strategy is sitting on an unrealized loss on its large cryptocurrency holdings, yet the company’s founder shows no sign of pulling back.
When that premium disappears, the case for buying the stock instead of Bitcoin directly becomes harder to make. Continued share sales chip away at existing shareholders by increasing the total number of shares in circulation.
If Bitcoin were to climb back to its record high of $126,300, the company’s current stash would be worth more than $96 billion — a number that makes the dilution argument easier to stomach for believers in the trade.
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Stock Chart Flashes Warning Signs
The technical picture for MSTR is grim by most standard measures. The stock traded at $120 at the end of last week, down from an all-time high of $542. It has broken below a key support level at $2320 — a floor it held as recently as March of last year.
A death cross has formed on the chart, with the 50-day moving average crossing beneath the 200-day moving average. The stock has also stayed below its Supertrend indicator since August, a pattern that signals a sustained downward trend under conventional technical analysis.
Featured image from Pexels, chart from TradingView
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