MicroStrategy stock faces heightened selling pressure, dropping nearly 70% from its all-time high. The premium over the value of its Bitcoin holdings has disappeared, with the enterprise value to net asset value (mNAV) ratio falling below 1. This suggests the market no longer values the company for its crypto strategy.
Bearish technical indicators, including a "death cross" pattern, have formed, signaling potential for further downside. This decline coincides with a broader Bitcoin price correction.
The company executed a strategic shift, pausing aggressive Bitcoin acquisitions. It instead sold shares to increase cash reserves to over $2.1 billion.
Persistent market concerns continue over a potential delisting from MSCI indexes. Such a move could force significant selling from passive funds. Furthermore, options data reflects an increase in bearish sentiment.