Strategy (NASDAQ: MSTR) formerly MicroStrategy shares are under immense pressure as investors react to a combination of weakening fundamentals.
By press time, MSTR stock was trading at $157, down 11% for the day. Over the past month, the equity has suffered massive losses, plunging 40%.
MSTR one-week stock price chart. Source: Finbold
Why MSTR stock is plunging
The steep decline followed remarks from CEO Phong Le, who acknowledged that the company could sell part of its Bitcoin (BTC) holdings if specific conditions are met. He outlined two triggers: a scenario where Strategy’s share price falls below its market-implied net asset value, and a situation in which the firm can no longer raise capital through its usual channels.
The possibility of a Bitcoin sale marks a significant departure from the company’s long-standing stance of holding its cryptocurrency reserves indefinitely, unsettling investors who viewed that commitment as central to its identity and valuation.
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