MSTR Slides 1.97% to 14th in 2.84B Volume Amid Bearish Call on Bitcoin Exposure

On August 21, 2025, Strategy (MSTR) closed at a 1.97% decline with a trading volume of $2.84 billion, ranking 14th in market activity. The stock's performance lagged behind the S&P 500, which fell 0.4% on the same day.

The downward pressure came from a bearish analyst note issued pre-market by Gus Galá of Monness, Crespi, Hardt. Galá reiterated a "sell" recommendation with a $175 price target, significantly below the stock's closing price of $337.58. The note highlighted concerns over the stock's premium valuation relative to its Bitcoin holdings and risks from growing convertible bond issuance, which could strain financial stability or dilute shareholder value if converted to equity.

As a near-pure-play Bitcoin investor, Strategy remains highly exposed to cryptocurrency price swings. While Bitcoin has seen strong gains, its inherent volatility poses ongoing risks for the company’s balance sheet and market confidence. Analysts emphasized that the firm’s reliance on Bitcoin amplifies sensitivity to macroeconomic shifts and regulatory developments in the crypto sector.

The backtested strategy of purchasing the top 500 stocks by daily trading volume and holding for one day from 2022 to 2025 generated a 31.52% total return over 365 days. The approach achieved a 0.98% average daily return but experienced significant fluctuations, peaking at 7.02% in June 2023 and hitting a -4.20% low in September 2022. This underscores the strategy’s moderate momentum capture amid market volatility.