Shares of Strategy (MSTR) dropped in morning trade on Friday amid Bitcoin’s (BTC) slide to under $63,000, after the company reported second-quarter results that missed Wall Street expectations. According to Executive Chairman Michael Saylor, there are five major headwinds working against Bitcoin right now.

fell more than 8% in morning trade after the company reported revenue of $122.4 million, slightly below analysts' estimates of $122.9 million, according to Koyfin. It also posted a loss of $24.45 per share, compared with Wall Street expectations for a $2.19 per-share loss.

The company attributed the quarterly loss to a "meaningful bitcoin price decline" alongside "muted bitcoin sentiment and market skepticism." Benchmark lowered its price target on MSTR stock to $435 from $570 and kept a ‘Buy’ rating on the shares, according to a note cited by TheFly.

also remained under pressure, falling more than 3.5% over the past 24 hours to around $62,500, its lowest level in roughly two weeks. Ethereum (ETH) posted a similar drop, slipping below $1,900, while Solana and XRP each declined more than 2%.

AI Data Center Spending Is Diverting Capital From Bitcoin

During the earnings call, Saylor stated that Bitcoin's recent weakness reflects broader macroeconomic forces rather than structural issues with the asset itself. He cited five key headwinds, including massive capital flowing into AI infrastructure projects.

According to the Chief Executive, AI data center construction alone has diverted more than $1 trillion of capital into infrastructure projects. He pointed to  (SPCX), Google (GOOG, GOOGL), Meta (META), Anthropic, OpenAI, and Bitcoin miners pivoting to data center infrastructure for the “capital suction” in both equity and private credit markets.

“We think at some point, we'll get through the biggest phase of that buildout, and we'll settle into an equilibrium, and that headwind will become neutral attacking land, or it will subside,” Saylor stated.

Fed Policy, Trade Tensions Add Pressure

Saylor added that ongoing global trade tensions and the conflict in the Middle East have also weighed on Bitcoin. “The Gulf disruption is a macro headwind, and it revs up in subsides and things escalate,” Saylor said.

The final factors, according to him, have been a tighter Federal Reserve policy and delays in regulatory clarity surrounding digital assets. “The Fed policy has tilted to becoming more restrictive over the past 9 months,” he said. “We could see even as of yesterday, there were rumors that the Fed might raise rates, and three of the Fed directors or governors actually voted to raise rates. So that restricted monetary policy from the Federal Reserve has been a headwind.”

Meanwhile, the CLARITY Act continues to be stuck in limbo. Lawmakers are attempting to advance the legislation before Congress begins its August recess. However, reports indicate supporters are still struggling to secure the 60 Senate votes needed for passage without Democratic backing. “The clarity bill has not moved as quickly as people have expected, and there's substantial uncertainty about when that will be resolved,” Saylor said.

Crypto Stocks Extend Selloff

The weakness spread across crypto-related equities. Coinbase (COIN) dropped more than 14% on Friday morning after also reporting second-quarter earnings that missed estimates, leading losses among large-cap crypto equities.

Meanwhile, Circle Internet Group (CRCL) fell roughly 8% despite announcing that it had secured a limited-purpose trust charter from the New York Department of Financial Services, and Tom Lee-backed Bitmine Immersion Technologies (BMNR) was down around 7%.

Retail sentiment on Stocktwits around Bitcoin and MSTR remained in ‘bearish’ territory over the past day, with some traders warning that Bitcoin could test lower support levels before stabilizing.

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The cryptocurrency selloff also triggered $360 million in liquidations over the past 24 hours, according to CoinGlass data.