**Strategy (Formerly MicroStrategy) Faces Renewed Pressure Amid Bitcoin Volatility**
Strategy, the company formerly known as MicroStrategy and led by Michael Saylor, which famously turned its balance sheet into a massive Bitcoin bet, is once again under significant market pressure.
According to CryptoQuant analyst Maartunn, the MSTR stock has recently broken below its 50-week exponential moving average (EMA), a critical technical indicator that typically distinguishes healthy uptrends from larger market corrections. Since this breakdown, the company has already lost 30% of its value, raising concerns among investors.
The timing of this decline is particularly unfortunate. Bitcoin currently hovers just above the $100,000 mark after a week of heavy selling pressure. Strategy holds approximately 641,205 Bitcoin, purchased at an average price near $74,000 each. These holdings are currently valued at around $64 billion, representing a 35% paper profit on their initial investment.
However, the primary source of concern is the leverage embedded in Strategy’s stock. When Bitcoin’s price slips, Strategy’s stock tends to move twice as hard in the same direction, amplifying downside risk. Presently, the company’s market capitalization stands between $68 billion (basic) and $76 billion (diluted), while its enterprise value exceeds $83 billion.
Strategy’s market-to-net-asset-value (mNAV) ratios range from 1.06 to 1.29. This suggests that investors are pricing in a premium above the company’s Bitcoin holdings—essentially a safety net that remains vulnerable to collapse should market confidence weaken.
**Worsening Sentiment and Market Worries**
Trader DonAlt voiced a blunt concern: “What happens to this garbage if BTC doesn’t hold $100,000?” He shared a chart indicating that MSTR’s stock could plunge another 55%, potentially falling to around $109 if Bitcoin’s price declines further.
This stark warning ignited heavy debate on X (formerly Twitter), with analysts split between dismissing the outlook as panic-induced speculation and acknowledging the brutally weak technical setup of the stock.
Some market watchers noted troubling parallels to 2022, when MicroStrategy’s share price lagged behind Bitcoin for months before eventually crashing in tandem with the cryptocurrency.
As the situation unfolds, investors will be watching both Bitcoin’s price action and Strategy’s stock performance closely to gauge the durability of this high-stakes Bitcoin bet.
https://u.today/michael-saylors-strategy-mstr-plunges-30-cryptoquant-analyst-demonstrates-why-its-bad-0