Strategy Inc’s shares dropped 7.7% in afternoon trading, retracing from an intraday peak of $135.96 to $126.82, according to market data.
The decline followed a recent $2 billion stock offering in which the company sold approximately 18.26 million shares between August 17 and August 23 via open-market transactions. Proceeds were allocated to bolster the company’s dollar reserves and repurchase preferred shares; no new Bitcoin purchases were made with the capital.
Bitcoin’s retreat of around 3% on the same day added to the pressure on Strategy’s stock, which had surged roughly 37% from mid-August lows and entered overbought territory. The company’s shares remain well above the 52-week low of $81.81.
Analysts at Bernstein reduced their price target for Strategy from $450 to $350 on August 26, citing valuation concerns. The downgrade coincided with disclosures of share sales by a company director, further weighing on sentiment.
Broader equity benchmarks also declined, with the NASDAQ falling 0.6% and the S&P 500 down 0.3%.
