Why did Strategy Inc. stock fall?

Strategy Inc. stock fell due to investor anticipation of its earnings report and a significant decline in Bitcoin prices, which has impacted the perceived value of the company's substantial Bitcoin holdings.

What was the analyst's revised price target for Strategy stock?

A leading analyst at Canaccord revised the price target for Strategy stock down to $185 from $474, primarily due to the decrease in Bitcoin's market value.

What is the general sentiment on Wall Street regarding Strategy Inc. stock?

Wall Street sentiment remains broadly positive, with a Strong Buy consensus rating and an average price target of $437.11, suggesting potential upside if Bitcoin stabilizes.

Home / Business and Economy / Strategy Stock Plummets on Bitcoin Slump

Strategy Stock Plummets on Bitcoin Slump

7 Feb

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Summary

Stock fell 5% pre-market on upcoming earnings and Bitcoin drop.
Analyst drastically cut price target from $474 to $185.
Company holds significant Bitcoin, impacting its balance sheet value.

Strategy Stock Plummets on Bitcoin Slump

Strategy Inc. shares experienced a notable selloff in pre-market trading on February 7, 2026. Investors are closely watching the company's upcoming earnings report amid a broader market downturn for Bitcoin, which is trading below $70,000.

This outlook has raised concerns regarding the valuation of Strategy's significant Bitcoin holdings. A leading analyst at Canaccord recently revised their price target for Strategy stock downwards to $185 from $474, citing the decline in Bitcoin prices as the main driver for this adjustment. As of February 7, 2026, Bitcoin was trading at $69,274.19, reflecting an 8.92% decrease in the past 24 hours.

The decline in cryptocurrency values directly impacts Strategy's balance sheet due to its substantial exposure to digital assets. Despite the lowered price target, Canaccord maintained a Buy rating, viewing Strategy as an investment vehicle for those seeking Bitcoin exposure without direct ownership.