Strategy Inc. (NASDAQ: MSTR), formerly known as MicroStrategy, is facing pressure from falling Bitcoin prices and a shift in its Bitcoin accumulation strategy.

• Barclays lowered its price target for Strategy to $125 from $130 while maintaining an “Overweight” rating. Based on the stock’s closing price of $93.28 on July 31, the new target implies potential upside of approximately 34%.
• Strategy has slowed or paused its regular Bitcoin purchases as its stock price and valuation have come under pressure. This challenges the company’s traditional “flywheel” strategy, which involves issuing equity or other securities to raise capital, purchasing more Bitcoin, and using the increased Bitcoin holdings to support its market valuation.

Strategy, formerly MicroStrategy, operates both an enterprise analytics software business and one of the world’s largest corporate Bitcoin treasury operations. Because the company holds a substantial amount of Bitcoin, its stock price and financial results are highly sensitive to changes in the cryptocurrency’s value.

On August 3, 2026, Barclays analyst Nik Cremo lowered the firm’s price target to $125 from $130. At the time, MSTR shares were trading around $93.28, representing potential upside of approximately 34%. The stock had closed at $93.28 on July 31, down 4.56% for the session.

The company’s second-quarter results showed significant financial pressure. Strategy reported a net loss of $8.22 billion, or $24.45 per diluted share. The loss was primarily caused by an $8.32 billion unrealized loss on its digital assets following a decline in Bitcoin’s fair value.

An unrealized loss is a decline in an asset’s reported value before the asset is sold. Therefore, the $8.32 billion loss was largely a non-cash accounting loss rather than an equivalent cash payment during the quarter. Strategy’s revenue was $122.4 million, up 6.9% year over year.

As of July 26, 2026, Strategy reported holding 843,775 Bitcoin at an average acquisition price of approximately $75,476 per coin. The company subsequently sold 1,638 Bitcoin for approximately $105 million to support preferred-stock dividends and share repurchases.

Strategy has also established a Bitcoin monetization program that authorizes sales of up to $1.25 billion to fund its cash reserve, preferred-stock dividends, interest expenses, and share repurchases. Media reports have separately described a broader potential sale of up to $5 billion, but this should be presented as a possible capital-management action rather than a confirmed transaction.

The combination of weaker Bitcoin prices, large unrealized accounting losses, reduced Bitcoin purchases, and possible asset sales represents a significant shift from Strategy’s earlier aggressive accumulation model.