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Strategy Stock Falls 16% YTD as Bitcoin Drops Below $90,000
Despite a significant decline of 16% year-to-date (YTD), many analysts remain optimistic about Strategy’s future prospects. The company’s stock price has been negatively impacted by the recent correction in the cryptocurrency market, with Bitcoin dropping below the $90,000 mark.
Notably, research firm Benchmark recently raised Strategy’s price target to $650, citing confidence in the company’s ability to continue aggressively raising capital to fuel its bitcoin acquisition strategy throughout 2025. The analysts have introduced the concept of “Bitcoin yield” as a key metric for evaluating Strategy’s performance, which measures the ratio of Bitcoin holdings to outstanding shares.
While Strategy faces significant market volatility, its long-term vision for Bitcoin acquisition remains ambitious. In November, the company announced its goal of purchasing $42 billion worth of Bitcoin by 2027. However, this ambitious plan has already been met with criticism from some market observers who question the sustainability of the company’s strategy.
Some experts have raised concerns that Strategy’s ability to raise capital could deteriorate if its liabilities rise significantly higher than its assets. Nevertheless, given the current Bitcoin price and the recent correction in the cryptocurrency market, the company still maintains a substantial buffer before being forced to sell its Bitcoin holdings.
Interestingly, some industry observers point out that the current market downturn differs from previous downturns due to ongoing institutional interest in Bitcoin. They suggest that governments and institutions are building Bitcoin reserve programs, potentially establishing stronger long-term demand for the digital asset.
Overall, while Strategy’s stock price has taken a hit in recent times, many analysts remain committed to the company’s vision of aggressively acquiring Bitcoin throughout 2025.
Source: https://blockonomi.com/strategy-stock-falls-16-ytd-as-bitcoin-drops-below-90000/
