BREAKING: MicroStrategy ($MSTR) Faces Major Drawdown — Here’s What’s Really Happening
Michael Saylor’s MicroStrategy ($MSTR) has suffered a massive correction, dropping ~66% from its peak of $457 to around $152 over the past six months. This move has erased nearly $90 billion in market value, marking one of the steepest drawdowns in the company’s history.
What caused the crash?
Several major factors have converged at the same time:
1️⃣ Bitcoin Price Decline
$BTC has pulled back sharply from its highs near $126K to around $87K, heavily impacting MSTR due to its extreme exposure to Bitcoin.
2️⃣ Aggressive Share Dilution
Ongoing capital raises to accumulate more BTC have increased share count, pressuring existing shareholders and weakening per-share value.
3️⃣ Index & ETF Rebalancing Risks
Concerns around potential index removals and reduced institutional exposure have added selling pressure.
4️⃣ Collapse in NAV Premium
MSTR historically traded at a premium to its Bitcoin holdings. That premium has now flipped into a discount, signaling a major shift in market sentiment.
Current Snapshot:
BTC holdings: ~$59B
MSTR market cap: ~$46B
Implied discount: ~20–25% below NAV
This means the market is now valuing MSTR below the value of the Bitcoin it holds — a sharp contrast to previous cycles where investors paid a significant premium for BTC exposure through the stock.
Big Question Going Forward:
Is this a long-term value opportunity tied to Bitcoin’s next move — or a warning sign that the leveraged BTC strategy is losing market confidence?
One thing is clear: MSTR has officially entered a high-volatility, high-conviction zone.PLEASE FOLLOW BDV7071.
