MSTR stock today: MicroStrategy (MSTR) shares tumbled more than 8% on Monday as Bitcoin’s slide to its lowest levels in months continued to rattle the crypto sector, as per a report. With the company serving as the world’s largest corporate holder of Bitcoin, its stock once again acted as a highly leveraged proxy for the cryptocurrency’s decline, deepening the sell-off.
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Investors pushed markets higher ahead of the Thanksgiving holiday, with the Nasdaq rising 2.6% and the S&P 500 climbing 1.6% after Alphabet revealed its upgraded Gemini 3 AI model. That optimism spread across the tech sector, boosting Broadcom, Micron, and Palantir.
The rally also built on momentum from the prior trading session, after the New York Fed president kept the possibility of a December interest rate cut on the table, as per the Stock Story report.
Because Bitcoin dropped to its lowest levels in months, pulling down crypto-linked stocks like MSTR.
Why does MSTR move so closely with Bitcoin?
MicroStrategy is the world’s largest corporate holder of Bitcoin, so its stock reacts strongly to BTC price swings.
MicroStrategy (MSTR) Flags Possibility of Selling Bitcoin (BTC USD) Holdings
CEO Phong Le recently acknowledged that MicroStrategy could be forced to sell a portion of its Bitcoin holdings as a “last resort” if its valuation premium over net asset value drops below a critical level and it becomes unable to raise capital, as per a Stock Story report. The comments introduced a wave of uncertainty for investors who have long viewed the company’s Bitcoin reserves as central to its strategy.$1.44 Billion Cash Reserve Announced to Protect Dividends and Debt
At the same time, MicroStrategy announced a $1.44 billion cash reserve meant to protect dividend and debt payments. But initial worries over a potential Bitcoin liquidation, paired with a broad risk-off mood across the market, overshadowed the move.ALSO READ: Tesla stock warning: Why Michael Burry says EV maker is "ridiculously overvalued" and Musk’s $1 trillion pay package risks major dilution
MSTR Stock Crashes 40% in One Month Amid Crypto Market Weakness
The selling pressure comes during a difficult month for the stock. MicroStrategy shares, trading around $157, have fallen roughly 40% over the past 30 days. The possibility of shifting away from its previous stance of holding Bitcoin indefinitely has added to investor unease, especially as the cryptocurrency struggles to maintain levels above $90,000.Investors Question MicroStrategy’s Long-Term Bitcoin (BTC USD) Strategy
The company’s latest update underscores the tension between its long-standing Bitcoin-heavy strategy and its current financial challenges. Investors appear unsettled by the idea that the company’s future plans could change depending on capital conditions and valuation pressures.ALSO READ: Social Security spousal benefits explained: Eligibility, payouts, and how to maximize your retirement income
MicroStrategy’s Bitcoin Holdings Exceed Its Market Capitalization
MicroStrategy still holds 650,000 Bitcoin, valued at about $55 billion at current prices. Yet its market capitalization has slipped to roughly $45 billion, now sitting below the value of its Bitcoin reserves. Adding to the mix, the company recently purchased 130 additional Bitcoin for $11.7 million, funded through the issuance of common shares.Tech Rally Last Week Offered Brief Relief for MSTR Stock
This week’s downturn follows a more upbeat stretch just seven days ago, when MicroStrategy shares gained 4.2% amid renewed enthusiasm for Alphabet.Investors pushed markets higher ahead of the Thanksgiving holiday, with the Nasdaq rising 2.6% and the S&P 500 climbing 1.6% after Alphabet revealed its upgraded Gemini 3 AI model. That optimism spread across the tech sector, boosting Broadcom, Micron, and Palantir.
The rally also built on momentum from the prior trading session, after the New York Fed president kept the possibility of a December interest rate cut on the table, as per the Stock Story report.
FAQs
Why did MicroStrategy’s stock fall today?Because Bitcoin dropped to its lowest levels in months, pulling down crypto-linked stocks like MSTR.
Why does MSTR move so closely with Bitcoin?
MicroStrategy is the world’s largest corporate holder of Bitcoin, so its stock reacts strongly to BTC price swings.
