Strategy Inc Shares Drop 17% on $17.5B Bitcoin Loss, Test $105 Support
Strategy Inc recorded a $17.5 billion unrealized loss on its Bitcoin holdings after the cryptocurrency’s price halved, driving its stock down 17% intraday. The shares hit their long-standing $105 support level—where buyers historically re-entered—potentially setting the stage for a technical rebound.
1. Bitcoin Halving and Unrealized Loss
On the date of the Bitcoin network’s halving event, Bitcoin’s price fell sharply, prompting Strategy Inc to record a $17.5 billion unrealized loss on its crypto holdings. This loss reflects the decline from its average cost basis and underscores the company’s high exposure to Bitcoin fluctuations.
2. Stock Price Reaction
In response to the mark-to-market loss, Strategy Inc shares tumbled 17% in a single session, marking one of the steepest intraday declines in recent months. The selloff heightened volatility and raised questions about investor confidence in the company’s digital asset strategy.
3. Historical Technical Support at $105
The shares approached the $105 level, a price that has acted as solid support twice since May 2024 when buyers absorbed sell pressure and initiated rallies. This recurring support suggests trader sentiment remains strong around that benchmark, potentially cushioning further declines.
4. Outlook and Potential Upside
If historical patterns hold, renewed buying interest near $105 could catalyze an uptrend, especially if investors fearful of missing out start bidding above sellers. A successful rebound could validate technical analysts’ view that the downtrend has ended, setting the stage for a recovery rally.