New York, Jan 16, 2026, 17:43 EST — After-hours trading
Strategy Inc shares climbed 1.6% in after-hours trading Friday, last seen at $173.71. Bitcoin slipped roughly 0.4%, hovering near $95,284.
Strategy, once known as MicroStrategy, has emerged as one of the most liquid bitcoin proxies in the market, following a major overhaul of its balance sheet centered on the cryptocurrency. On numerous trading days, this connection tends to overshadow its software operations.
The key question now: how long can the company keep buying bitcoin without relying more on stock sales? That’s a big deal for shareholders wary of dilution. With earnings just weeks away, any talk of target cuts hits differently.
Mizuho cut its price target on Strategy to $403 from $484 on Friday but maintained an Outperform rating. The broker flagged a wider 2026 outlook for fintech and crypto, shaped heavily by politics and regulation, including the growing role of dollar-pegged stablecoins.
TD Cowen downgraded its target price to $440 from $500 but maintained a Buy rating, citing a drop in expected “bitcoin yield” for fiscal 2026. This term measures how much bitcoin exposure the company can add per share. Cowen also noted that “greater equity in the mix reduces BTC Yield.” Investing.com
TD Cowen analyst Lance Vitanza called Strategy “attractive for those seeking bitcoin exposure,” but noted a trade-off between scale and per-share economics. He pointed out that since the purchases were mainly funded by equity issued near parity, the week’s activity generated very little BTC Yield, he wrote. TipRanks
A recent filing revealed Strategy offloaded 6,827,695 shares of its Class A stock along with 1,192,262 shares of its variable-rate preferred stock between Jan. 5 and 11, netting roughly $1.25 billion. The company used these funds to purchase 13,627 bitcoin, boosting its total holdings to 687,410 bitcoin.
Strategy announced Thursday it plans to release its fourth-quarter 2025 earnings after U.S. markets close on Feb. 5, followed by a live video webinar at 5 p.m. Eastern.
Crypto-related stocks showed mixed results in late trading. Coinbase gained roughly 0.8%, whereas Robinhood dropped close to 1.4%.
The downside risk for Strategy remains unchanged: a sharp drop in bitcoin could push the stock lower and quickly shrink the company’s financing options. Issuing more shares might sustain the buying program, but it dilutes potential future bitcoin gains among a larger shareholder base.
U.S. markets remain shut Monday in observance of Martin Luther King Jr. Day, with trading set to resume Tuesday. All eyes then shift to Feb. 5, when Strategy is expected to report results and offer updates on its funding structure and bitcoin buying strategy.
