Strategy CEO Phong Le said the company’s Structural Convertible Note (STRC) product outperformed the iPhone after generating $5 billion in cumulative revenue. Despite his statements, MSTR’s stock price outlook remains bearish. The stock posted a 3.11% decline on Tuesday and closed trading at $123. However, it rose 6.45% before the market opened amid news of a two-week ceasefire between the US and Iran.
The strategy’s STRC is seeing a surge in demand amid a $5 billion milestone
In a The last interview With Natalie Brunelle, Lu said that in just seven months, STRC reached US$5 billion in cumulative revenue due to high participation from retail investors. He noted that Apple took one year to reach $5 billion in cumulative revenue, while Google Ads took four years.
He also compared STRC to gold and Ethereum ETFs. Gold ETFs took nearly five years to get $5 billion in assets under management (AUM), while ETH ETFs took a year. Lu admitted that the only financial product that performed better than STRC was the BlackRock Bitcoin ETF (IBIT), which took about 5 months to achieve assets under management of $5 billion.
According to Lu, STRC’s success has not been without challenges. He pointed out that after four launches, it is Stretch, which was launched last year, that has achieved the greatest success. He likened it to the iPhone, noting that initial iPhone releases were not a huge success.
“The fourth product release is the one, as we’ve proven through some results, that retail really wants. The iPhone moment, as we said,” Lu noted.
However, STRC’s growth did not boost MSTR’s stock price outlook. It still faces downside headwinds and is down more than 21% year-to-date The constant fluctuations of Bitcoin.
MSTR stock price forecast with a bearish pattern emerging
MSTR has been in a downtrend This year despite continued Bitcoin buying by Strategy. It opened the year trading at $157 and has since dropped to $123. A look at the four-hour chart now shows that it may not be out of the woods yet despite pre-market gains of more than 6%.
The formation of an expanding rising wedge channel supports this bearish outlook MSTR stock price. This pattern shows that there has been a lot of volatility during most of 2026. If the buying momentum fades as buyers seek to avoid volatility, the MSTR could lose lower bound support. This could push the price below the major support level at $118.
The RSI at 42 shows that buyers are staying away, and unless there is a break above 50, the possibility of a drop below $118 increases. However, the AO bars, which turned green despite being negative, show a ray of hope for bulls. They show that the downtrend is growing weakly, and that support could continue.
Therefore, if STRC growth leads to a bullish MSTR price outlook at a time when geopolitical tensions subside, it is possible for buyers to step back and trigger a reversal. A close above the resistance at $138 will invalidate the bearish thesis.
