TLDR
- MSTR stock dropped 57% from its year-high, reaching a low of $192.
- The company’s market capitalization fell by $72 billion, dropping from $128 billion to $57 billion.
- MSTR continued buying Bitcoin, adding 8,178 coins valued at over $835 million last week.
- CEO Michael Saylor remains confident that Bitcoin will rebound and outpace gold and the S&P 500.
- Despite Bitcoin’s price decline, MSTR’s average purchase price of $48,000 keeps it profitable.
MSTR stock fell sharply on Monday, reflecting Bitcoin‘s continued downward trend. The company’s stock fell to $192, its lowest level since October 2024. This decrease marked a 57% decline from the stock’s highest point earlier this year, resulting in a $72 billion loss in market value.
MSTR Stock Buys 8,178 Bitcoins Despite Volatility
Despite Bitcoin’s price decline, MSTR remains committed to expanding its Bitcoin holdings. Last week, the company purchased 8,178 Bitcoins, valued at over $835 million. With this acquisition, MSTR now owns a total of 649,870 Bitcoins, worth more than $61.7 billion.
CEO Michael Saylor continues to express confidence in Bitcoin’s future performance. “I believe Bitcoin has more room to run,” Saylor said, pointing to the strong fundamentals behind the cryptocurrency. He also emphasized that the recent market volatility is typical for Bitcoin, referencing past periods of price fluctuations.
MSTR’s strategy remains profitable, given its average purchase price for Bitcoin of $48,000. Despite the current market retreat, Saylor believes that the digital asset’s limited supply and growing institutional demand will drive its value higher over time.
MSTR’s Market Net Asset Value Declines
MSTR’s market Net Asset Value (mNAV) has declined sharply in recent months. The company’s mNAV fell to 0.94, down from a high of over 3 earlier this year. This drop comes as Bitcoin’s price continues to struggle, impacting the company’s overall valuation.
The decrease in mNAV reflects the challenges MSTR faces with its Bitcoin holdings. However, despite the drop in mNAV, Saylor maintains confidence in Bitcoin’s long-term growth. “The fundamentals are strong, and the demand is rising,” he stated.
The decline in MSTR’s mNAV and stock price highlights the risks of its aggressive Bitcoin investment strategy. As the company continues to buy Bitcoin, its market valuation will remain closely tied to the cryptocurrency’s price fluctuations.
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