The stock of Strategy (MSTR) is trading at a 52-week low heading into Christmas as the price of Bitcoin (BTC) continues to slide lower.
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MSTR stock is currently changing hands at $155.10, its lowest level in a year as the serial Bitcoin acquirer gets dragged lower along with the market for cryptocurrencies. Strategy’s share price is now down nearly 50% on the year as Bitcoin’s price has fallen more than 30% since mid-October.
A former software company, Strategy has pivoted in recent years to become a serial acquirer of Bitcoin. It is now the largest corporate owner of BTC in the world, with its current holdings worth $60 billion. However, the fortunes of Strategy’s stock are now intimately tied to the price of Bitcoin.
Pausing Bitcoin Purchases
News that MSTR stock has hit a 52-week low comes as the company has paused its Bitcoin purchases in favor of building up its cash reserves. Strategy, formerly known as MicroStrategy, raised $748 million through common stock sales in the week ended Dec. 21, according to a regulatory filing.
Despite the sharp downturn in BTC and MSTR stock, Strategy Executive Chairman Michael Saylor says he remains bullish on Bitcoin and has no plans to sell any of the company’s cryptocurrency. A growing number of analysts say that we’re now likely in a “crypto winter,” defined as a prolonged downturn in prices for digital assets.
Is MSTR Stock a Buy?
Strategy’s stock has a consensus Strong Buy rating among 14 Wall Street analysts. That rating is based on 12 Buy and two Hold recommendations issued in the last three months. The average MSTR price target of $467.75 implies 198.88% upside from current levels.
