What is happening with MSTR?
7.8% drop following Bitcoin's retreat $BTC
MicroStrategy shares, strongly correlated with the price of Bitcoin, fell by 7.8% and reached their lowest level in four months. This occurred at the same time that Bitcoin retraced to around USD 113,000, in a climate of widespread risk aversion.
Macroeconomic context: nerves ahead of key Fed speeches
This environment of mass selling was influenced by the caution of crypto asset investors ahead of the upcoming intervention by Federal Reserve Chairman Jerome Powell in Jackson Hole.
Additional factors at play
Disconnection between BTC and MSTR
Although MicroStrategy holds large reserves of BTC, the performance of its stock does not always keep pace with Bitcoin. The reduction in the premium between the stock and the value of its holdings reinforces this gap. The diagnostic report also mentions concerns about its valuation and financing costs.
Flexibility to issue new shares
Michael Saylor announced changes to the rules for issuing MSTR shares below the market value of its assets, which will give him flexibility to finance BTC purchases. This move reflects strategic adaptations in response to a reduced premium.
Global impact on the crypto sector
In addition to MicroStrategy, the drop strongly affected other companies linked to the crypto ecosystem:
Galaxy, SharpLink, BitMine: declines of between 8% and 10%.
Robinhood and Coinbase: also experienced significant drops, indicating a general correction in the sector.
The drop in MSTR is not isolated. It reflects a combination of factors:
Direct impact of the BTC crash (~3%) on this day.
General risk aversion due to economic uncertainty and upcoming monetary policy decisions.
Additional pressure on its valuation and financing capacity through stock issuance.
If you are interested in MSTR, watch to see if it manages to hold at relevant technical support (~USD 330).
Check additional signals, such as flows into Bitcoin ETFs or macro news that could change sentiment.
The recent flexibility in share issuance will be key to allowing more BTC purchases, but it may also dilute shareholder value.