Strategy (formerly MicroStrategy), the largest corporate Bitcoin holder, saw a decline of more than 7% in its MSTR stock despite the massive $2.13 billion in Bitcoin acquisition. The decrease in MSTR stock occurred alongside broader pullbacks in both Bitcoin and U.S. stock markets, attributed to concerns about possible Trump administration tariffs.
MSTR Stock Tumbles Over 7%
MSTR stock closed 7.76% at $160.23 on Tuesday, erasing nearly all gains earlier in the year. The intraday high and low were $165.72 and $158.85, respectively. Trading volume surpassed the average of 19 million shares, showing elevated selling pressure in the U.S. stock market.
This continued decline indicates rising investor uncertainty regarding MicroStrategy’s Bitcoin strategy. The decrease is associated with concerns about significant dilution of Class A shares. Ongoing share issuances to finance Bitcoin acquisitions and to cover dividends on preferred securities have caused these concerns.
MSTR Stock Institutional Ownership. Source: FintelHowever, institutional ownership has increased sharply since the October crypto market crash. It became one of the main reasons puts have dropped immensely on MSTR stock and investors have kept long exposure. Notably, Vanguard Group’s Value Index Fund disclosed a $200 million purchase and VanEck recently revealed that it is a top holder.
MSTR stock has declined by nearly 46% over the past three months and has fallen almost 60% over the past year, according to data from Strategy’s dashboard.
Strategy’s mNAV Drops to 1.06 amid Bitcoin Selling Pressure
Strategy’s mNAV, which measures the ratio of enterprise value to the market value of its Bitcoin holdings, has decreased to 1.06, according to MicroStrategy. As of the time of writing, the enterprise value stands at $67.25 billion.
Strategy’s Bitcoin NAV and mNAVThe market value of Strategy’s total Bitcoin holdings fluctuates near $63.30 billion. As CoinGape reported on Tuesday, Michael Saylor’s Strategy acquired 22,305 BTC for $2.13 billion at an average price of $95,284 per Bitcoin. The company now holds a total of 709,715 BTC.
MSTR stock may experience further declines if Bitcoin prices do not recover. Geopolitical tensions related to Trump tariffs, outflows from spot Bitcoin ETFs, and forthcoming macroeconomic events are likely to maintain selling pressure on BTC.
BTC price is currently trading near $89,000, with a 24-hour low of $87,814 and a high of $91,343. Trading volume has increased by 45% over the past 24 hours.
Source: https://coingape.com/news/stocks/will-mstr-stock-recover-after-a-7-price-crash/
