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Strategy Stock Extends Slide as Analyst Reiterates Sell, Cites Premium Risk

Analyst Gus Galá argues credit‑market doubts could squeeze Strategy’s valuation premium.

Overview

  • Shares fell about 2% Thursday to roughly $336, leaving the stock down around 20% over the past month.
  • Monness, Crespi, Hardt’s Gus Galá reaffirmed a Sell rating with a $175 price target and warned the market cap relative to Bitcoin holdings is likely to narrow.
  • Galá pointed to ongoing skepticism over the company’s debt- and equity-funded Bitcoin purchases and questioned the likelihood of near‑term investment‑grade ratings.
  • Strategy reports more than 629,000 Bitcoin on its balance sheet, valued above $71 billion as of Aug. 21, making it the largest corporate holder.
  • Hedge fund manager Josh Mandell said he exited his stake this week, citing share sales below a value threshold previously suggested by Michael Saylor.