Strategy (formerly MicroStrategy) saw its stock (MSTR) decline by more than 5%, as Bitcoin’s price drop pushed its market capitalization-to-BTC holdings ratio down to 1.6—its lowest level in months.
MSTR Stock Drops as Bitcoin Falls Below $90,000
According to Yahoo Finance data, Strategy’s stock plummeted 5.65% in pre-market trading, closing at $282.76 on February 25. The decline was closely linked to Bitcoin’s sharp price drop, which fell as low as $87,630, marking a 7.22% decline in just 24 hours.
Michael Saylor’s firm, widely known as the largest corporate holder of Bitcoin, has accumulated over 2% of BTC’s total supply since late 2024. Its most recent purchase included 20,356 BTC worth nearly $2 billion at the time.
BTC Premium Collapses, Raising Concerns Over Future Purchases
Crypto analyst Miles Deutscher highlighted that Strategy’s BTC premium has collapsed from a high of 3.4 in November to just 1.6, meaning that the stock’s market valuation is now much closer to the actual value of its Bitcoin holdings rather than trading at a premium.
“The lower this number goes, the harder it will be for Saylor to raise more capital for BTC purchases,” Deutscher noted.
This shrinking premium makes it more difficult for Strategy to issue shares or leverage its stock to buy more Bitcoin. If BTC prices fail to recover, investors may be unwilling to pay above the intrinsic value of Bitcoin, limiting Saylor’s ability to continue accumulating BTC at the same pace.
What’s Next for Strategy and Bitcoin?
With Bitcoin’s recent decline, Matrixport analysts warn that BTC could experience a deeper downturn, particularly as low trading volumes weaken demand for dip-buying. If this trend continues, Strategy’s stock may face further selling pressure, especially if investors begin questioning the company’s long-term ability to sustain its Bitcoin accumulation strategy.
For now, all eyes remain on BTC’s price movements, as Strategy’s stock continues to mirror Bitcoin’s volatility in the broader crypto market downturn.
