New York, Jan 29, 2026, 17:48 EST — After-hours
- Strategy shares dropped alongside bitcoin as investors pulled back from riskier assets
- The stock’s volatility continues to track the cryptocurrency, largely due to Strategy’s substantial holdings.
- Traders have their eyes on Washington and Strategy’s results scheduled for Feb. 5 as the next catalyst
Strategy Inc (MSTR.O) shares dropped 9.7% to $143.19 in after-hours trading Thursday, having slid as much as roughly 12% earlier. Bitcoin fell 5.5% to around $84,273, hitting an intraday low near $83,340 before bouncing slightly.
The shift is significant since Strategy’s stock now acts as a liquid stand-in for bitcoin — and a far more volatile one at that. When the token slides, traders usually sell the equity immediately, worrying about details afterward.
Thursday’s selloff unfolded as investors stepped away from riskier assets across the board. “Investors are trying to reduce exposure to stocks and play it safe,” said John Praveen, managing director and co-chief investment officer at Paleo Leon, citing a range of uncertainties rattling the markets. (Reuters)
Bitcoin failed to provide much refuge. “There has been a broad repricing of risk where commodities and real assets have outperformed on geopolitical and supply dynamics, while speculative growth trades have declined,” Wenny Cai, chief operating officer at Synfutures, told Barron’s. (Barron’s)
Strategy’s exposure is built into its structure. According to the company’s filings, it owns 712,647 bitcoin, bought at an average price of $76,037 each. (Strategy)
The balance sheet is backed by a funding engine that investors track as closely as the crypto tape. A Jan. 26 SEC filing revealed Strategy sold 1,569,770 shares, raising $257.0 million net. It then used that cash to purchase 2,932 bitcoin, shelling out about $264.1 million. On top of that, it offloaded 70,201 shares of its STRC preferred stock for $7.0 million. These sales happened through an at-the-market program — a method allowing the company to slowly release new shares into the market over time. (SEC)
Other crypto-related stocks followed suit on Thursday. Coinbase Global (COIN.O) dropped 4.8% in late trading. Bitcoin miners Marathon Digital (MARA.O) and Riot Platforms (RIOT.O) slid 4.8% and 3.3%, respectively.
Policy risk lingers as a U.S. Senate panel pushed forward a crypto market-structure bill Thursday. The legislation would hand the Commodity Futures Trading Commission authority over spot crypto markets, but clearing the full Senate remains a steep challenge. “We’re almost in the red zone on this bill,” Senator Cory Booker warned before the vote. (Reuters)
The straightforward risk for Strategy shareholders remains bitcoin’s price. A sharper drop would deepen unrealized losses on the company’s assets and could spark fresh worries about dilution if it continues issuing shares to finance purchases.
Traders on Friday will be focused on whether bitcoin can regain its footing following a steep slide and if risk appetite makes a comeback after a volatile week for stocks. A further dip in the token usually shows up fast on Strategy’s tape.
Strategy is set to release its fourth-quarter results on Feb. 5, right after U.S. markets close, followed by a 5 p.m. ET webcast. Investors will be watching closely for updates on its bitcoin strategy, the speed of its financing, and how it intends to handle ongoing volatility. (Strategy)
