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.

However, market sentiment has shifted, with investors showing less willingness to accept a significant premium over the value of the Bitcoin held by the company. This has contributed to the recent selling pressure ahead of the earnings announcement.

Despite the market volatility, Strategy anticipates a modest increase in fourth-quarter revenue, projected at approximately $119.12 million. Furthermore, forecasts suggest a narrowed net loss per share to $0.08, a substantial improvement from the $3.03 loss reported a year earlier.

Wall Street sentiment remains largely positive, with a consensus Strong Buy rating. The average analyst price target stands at $437.11, indicating significant potential upside should Bitcoin stabilize and investor confidence rebound. Analysts are monitoring for signs of a market bottom and potential crypto winter trends.