Shares of Strategy Incorporated (MSTR) suffered a severe collapse, falling by more than 75% from their July 2025 highs to last Thursday’s low. The main trigger was concern over the cryptocurrency market, as the company holds more than 700,000 coins on its balance sheet, with an average purchase price of around $76,000 per coin.

However, trading opened on Friday with a bullish gap, and MSTR surged by more than 20% during the session. Market sentiment shifted sharply due to two key factors:

→ Quarterly earnings release. Although earnings per share missed expectations, investors were reassured by statements from founder Michael Saylor and CEO Phong Le, who stressed that the decline in the price of the leading cryptocurrency does not threaten the company’s financial stability. Management confirmed that, despite unrealised losses, the core business generates sufficient cash flow to service debt, and the accumulation strategy remains unchanged.

→ Recovery in cryptocurrency prices. After forming a low on Thursday, the BTC/USD rate rebounded, finding support near the psychological $60,000 level.

Back in early December, we noted that:
→ signs of demand were emerging on the chart, giving bulls hope for a recovery;
→ much would depend on the direction of BTC/USD.

Since then, MSTR shares initially stabilised, finding support around $157, but the downtrend later resumed, driven by:
→ renewed weakness in the cryptocurrency market;
→ resistance at the median of the descending channel, as shown by the arrows. A breakout attempt in mid-January failed, allowing bears to regain control.

The last two candles on the chart form a bullish engulfing pattern, reinforced by exceptionally high trading volumes — a sign of “smart money” activity, which may view current prices as attractive.

Positive sentiment could persist this week, but the key question is whether it will be strong enough to break above the line dividing the lower half of the channel into two quarters. If successful, a crucial test for the bulls would be the area around the psychological $150 level, which stands out as a major resistance zone.

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.