MicroStrategy Shares Plunge to $81.81 Low as Market Cap Falls Below Bitcoin Assets
MSTR•Strategy’s shares fell to an annual low of $81.81, extending eight straight sessions of losses and erasing 29% of market value last week as Bitcoin prices plunged. Market cap slipped below Bitcoin holdings value, against $6.75 billion debt, $15.5 billion preferred securities and under one year of dividend-funded cash.
1. Extended Selloff and Price Drop
MicroStrategy’s shares slumped to an annual low of $81.81, marking the eighth straight session of losses. The selloff erased about 29% of the stock’s value over the past week as a sharp decline in Bitcoin prices weighed on investor sentiment.
2. Market Cap Falls Below Bitcoin Holdings
The company’s market capitalization slipped below the value of its Bitcoin holdings, indicating investors are no longer willing to pay a premium above net asset value. This mNAV below 1 milestone underscores concerns about the stock’s valuation relative to its digital asset portfolio.
3. Balance Sheet Strains
MicroStrategy faces $6.75 billion of outstanding debt and $15.5 billion in preferred securities, while cash reserves cover less than one year of dividend commitments. These obligations heighten liquidity risks if Bitcoin prices remain depressed.
4. Management Response and Outlook
Co-founder and executive chairman Michael Saylor shared an acquisition-tracking chart hinting at further Bitcoin purchases. Market participants remain divided over whether the company should liquidate a portion of its holdings to shore up the balance sheet and support the share price.
