The MicroStrategy MSTR stock price and Bitcoin's value have shown unusual divergence lately, despite their typical correlation. Will MSTR stocks bounce back alongside Bitcoin? MicroStrategy shares plummet by 39%…
Mis à jour le 01/09/2025 à 19:41
MicroStrategy, the largest holder of Bitcoin globally, is now recognized in traditional finance as a top alternative to Bitcoin. However, recent performance setbacks have tainted this positive dynamic.
The MSTR stock price is down 39% from its peak of $541 on November 21. Last month, MSTR dropped by 21% compared to a mere 2% for Bitcoin. So, are MSTR stocks still a viable alternative to BTC?
MicroStrategy has long been seen as the best “proxy” for Bitcoin. MSTR stocks dominated the stock market for months. However, recent weeks have been a testing phase for Michael Saylor’s company.
Clearly, their fundraising strategy to acquire more Bitcoin plays a part. They announced plans to raise $42 billion to purchase more Bitcoin.
As a result, the number of MSTR shares will increase 43-fold, diluting shareholders’ earnings. This reduces earnings per share for holders, impacting them. The current scenario doesn’t favor Saylor, as a Bitcoin dip further accelerates this price decoupling. MSTR stocks rose by 320% in 2024 compared to 120% for Bitcoin.
In essence, these fundraisings are Michael Saylor’s bet on long-term Bitcoin growth. A new Bitcoin high could trigger a bullish trend for MSTR stocks.
Microstrategy holds over 130,000 Bitcoins, making it the largest publicly-traded company holding Bitcoin. MSTR stocks are therefore riskier bets on Bitcoin, offering extreme volatility both up and down.
The recent MSTR stock decline could stem from overvaluation compared to its operations. With a $65 billion market cap, the implied value exceeds $23 billion, seemingly high for a company with no technology or product offerings.
This recent correction may indicate a market investor evaluation rebalancing. However, Michael Saylor emphasized that MSTR stocks are indeed a way to invest in a more volatile asset correlated with Bitcoin. MSTR aims to provide this high-leverage investment vehicle.
How the market reacts to this novelty, especially in a very conventional traditional market, remains to be seen.
⚠️ This article is published for informational purposes and should not be considered as investment advice. Crypto-currency trading involves risk and it is important not to invest more than you can afford to lose.
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Ariela is one of the main editors of the news shared daily on InvestX. With 8 years of experience in writing, she writes articles on the topics that mark the crypto market each day.
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