Why Strategy Inc. (MSTR) Went Down On Tuesday?

We recently published a list of Tuesday’s 10 Worst-Performing Stocks. In this article, we are going to take a look at where Strategy Inc. (NASDAQ:MSTR) stands against other Tuesday’s worst-performing stocks.

Wall Street’s main indices suffered a bloodbath on Tuesday, recording steep losses amid the looming deadline for President Donald Trump’s new round of tariffs for China that would see the latter slapped with a cumulative 104-percent import tax.

The tech-heavy Nasdaq registered the heaviest fall, down by 2.15 percent, followed by the S&P 500’s 1.57 percent decline, and the Dow Jones’ 0.84-percent drop.

Ten companies mirrored the broader decline, recording hefty losses during the day. In this article, we listed the 10 worst-performing names and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

A software engineer wearing a headset, collaborating with a remote team on a project.

Strategy Inc. (NASDAQ:MSTR)

Strategy Inc., formerly MicroStrategy, dropped for a second day on Tuesday, losing 11.26 percent to end at $237.95 apiece as investors continued to sell off positions amid the global market uncertainties and its recent pause from acquiring Bitcoins last week.

The news was largely factored in especially due to the company’s usual aggressive stance in Bitcoin acquisition.

However, MSTR reportedly purchased 22,048 Bitcoins for $1.92 billion the week before, marking their largest acquisition to date.

Last Tuesday, investment firm TD Cowen reaffirmed its Buy rating and a price target of $550 for MSTR over its $722.5-million fixed income offer that could bolster its acquisition of more Bitcoins.

According to the analyst, the issuance of non-convertible preferred shares was a strategic move that would allow the company to advance its Bitcoin acquisition strategy.

MSTR was among the Bitcoin mining giants that had earned a boost from the US government’s backing of the cryptocurrency industry.

According to President Donald Trump, he plans to make the cryptocurrency industry a national priority.

Overall, MSTR ranks 8th on our list of Tuesday’s worst-performing stocks. While we acknowledge the potential of MSTR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MSTR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.