Strategy (NASDAQ: MSTR) stock dropped by 4.56% on July 31 to close trading at $93. The drop occurred a day after Strategy reported a net loss of $8.2 billion in Q2 2026.
Strategy’s Executive Chairman, Michael Saylor, now notes that Strategy will no longer use 100% of its funds to buy Bitcoin, saying that the priority of the company has shifted towards pushing the value of STRC back to $100.
The STRC preferred stock dropped slightly on July 31 to close trading at $89.
Michael Saylor Announces Strategy’s Focus Shift
While speaking during Strategy’s Q2 earnings call, Saylor noted that Strategy is abandoning its previous model where it used 100% of its funds to buy Bitcoin. Instead, the company will start holding both cash and BTC.
“Perhaps the best way to buy the most Bitcoin is not to buy the most Bitcoin immediately,” Saylor said.
His sentiment comes after Strategy CEO Phong Le opined that the company will not buy more Bitcoin until STRC gets back to par.
An earlier report by CoinGape also noted that Strategy purchased back $25 million worth of STRC stock in the week between July 20 and July 24 while selling $544 million worth of MSTR shares in an effort to push the value of STRC back to $100.
Strategy’s shift from Bitcoin buying also comes after the company reported an unrealized loss of $8.32 billion on the BTC it holds. This BTC loss pushed the company’s total net loss in Q2 2026 to $8.22 billion.
Still, Strategy’s revenue during the quarter reached $122.4 million, which is a 6.9% increase from the $114.5 million reported in Q2 2025.
MSTR Stock Retests Multi-Week Lows Amid Weak Sentiment
The price of MSTR stock dropped briefly to $89 on July 31, marking the first time that it moved below $90 since July 1.
The drop occurred on the back of a heavy net loss as investors weighed the impact that another Bitcoin loss in the current third quarter would have on Strategy’s futures earnings.
The RSI reading of 43 on MSTR’s daily chart suggests that the momentum is favoring bears, and this could push the price below $90 again.
If Strategy shares close below this support of $90, it might move to the June 26 low of $81.
Still, the AO bars that are green despite being negative suggest that bears are losing this grip. This could aid MSTR in holding the support of $90.
However, MSTR stock needs to close above the resistance of $99 to make the bearish thesis invalid.
Wall Street Analysts Weigh in on MSTR Stock Outlook
Benchmark has reiterated a buy rating on MSTR stock, but at the same time trimmed its target from $570 to $435.
Benchmark analyst Mark Palmer noted that Saylor’s remarks during the Q2 earnings call largely focused on restoring STRC back to par, suggesting that the company plans to raise more funds to purchase Bitcoin.
H.C. Wainwright also reiterated that MSTR was still a buy, while giving the stock a target of $325.
The firm noted that Strategy’s cash reserve and the STRC repurchase efforts are strengthening its balance sheet and easing concerns around the company accruing more debt as Bitcoin price drops.