The MSTR stock price retreated on Monday as Bitcoin erased its yearly gains and after the company continued its accumulation.
Summary
- MSTR stock price continued falling as Bitcoin erased its year-to-date gains.
- Strategy bought 2,932 Bitcoins, bringing its holdings to 712,647.
- Technical analysis suggests that the Strategy stock will drop to $100.
Strategy stock dropped to $160, down sharply from its all-time high of $542 and its 2025 high of $455. Its crash has erased billions of dollars in value, a trend that may continue in the near term.
In a statement, Strategy said that it acquired 2,932 Bitcoin (BTC) for $254 million last week. It bought these coins at an average price of $90,000. It now holds 712,647 coins, currently worth over $62 billion. Most notably, it now holds over 3.3% of the total supply.
The ongoing Bitcoin accumulation poses a major risk for the company because it is occurring at a time when the market net asset value (mNAV) has fallen below 1. In the past, the company had a policy of not selling shares when its mNAV was below 12.
At the same time, the company is selling its ordinary shares to fund these purchases, a move that dilutes its existing shareholders. Its outstanding shares have jumped from below 80 million in 2021 to 300 million today.
MSTR stock price faces the risk of a falling Bitcoin price crash. Bitcoin dropped to $87,000 on Monday, erasing all the gains it made earlier this week. Its ETF outflows have jumped, while technical analysis suggests that it has more downside. It has formed a bearish flag pattern, consisting of a vertical line and a channel.
A Bitcoin price crash would likely lead to more downside for MicroStrategy. It will also lead to substantial losses by the company. In a recent note, the company said that it suffered a $17 billion loss in the fourth quarter.
MSTR stock price technical analysis
The daily timeframe chart shows that the Strategy share price has been in a strong bearish trend in the past few months. It has moved below the key support level at $228, its lowest level on March 10 last year.
The stock has remained below all moving averages and has formed a bearish flag pattern. Therefore, the stock will likely continue to fall as sellers target the psychological $100 level. Such a move would mean a 40% drop from the current level.