MicroStrategy shares fell sharply on June 24 as investors questioned the sustainability of its corporate strategy. The stock has declined approximately 80% from its peak. The company’s market capitalization currently sits roughly $11 billion below the value of the Bitcoin on its balance sheet.
Analysts attribute the downturn to fears of shareholder dilution from share sales used to fund Bitcoin purchases. A bearish head-and-shoulders technical pattern suggests the potential for further price declines. Some analysts have set price targets as low as $28.
Shrinking cash reserves and concerns over dividend obligations have further pressured the stock. Critic Peter Schiff highlighted the decline in both common and preferred shares as a significant warning for investors.