MicroStrategy’s Bitcoin Blunder: $90B Gone in 6 Months!

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MicroStrategy’s stock drops 66%, wiping $90B from its market cap, despite holding $59B in Bitcoin and stable liquidity.

MicroStrategy’s stock has taken a nose dive, plunging 66% in six months-because nothing says “stability” like betting the farm on a cryptocurrency that’s more volatile than a caffeine-fueled squirrel. 🐿️

This sharp decline comes as Bitcoin’s price has fallen significantly, and concerns have arisen around the company’s future. 🤯 (Spoiler: It’s still way better than a 401(k) in 2023.)

Despite these challenges, MicroStrategy’s Bitcoin holdings are still worth more than its current market cap, raising important questions about the long-term viability of its strategy. 🤔 (Or just how many “I told you so” tweets they’ll get.)

Bitcoin Price Decline and Market Impact

The price of Bitcoin has fallen from $126,000 to around $87,000 in the past six months. This significant drop has had a direct impact on MicroStrategy market value. 📉 (But hey, at least they’re not holding cash!)

The company holds over 672,000 BTC, valued at around $58.7 billion. While this decline affects the value of MicroStrategy’s Bitcoin, its liabilities are still well below this amount. 🎯 (Unless they’re counting in euros. Or maybe just a bad day.)

🚨BREAKING: Michael Saylor’s has now crashed -66% from $457 to $152 in the last 6 months.

Nearly $90 billion has been wiped out from the strategy’s market cap.

Reasons for this decline are the BTC price crash from $126k to $87k, heavy share dilution, index delisting…

– Bull Theory (@BullTheoryio) 🐄 (because if this were a cow, it would be milked for all it’s worth).

Even if Bitcoin were to fall to $74,000, MicroStrategy’s Bitcoin stack would still be worth more than its debt. 🤑 (But let’s be real, they’d still be mad about the 66% drop.)

The company’s total debt is approximately $8.24 billion, far less than the value of its BTC holdings. 🎯 (Unless they’re counting in euros. Or maybe just a bad day.)

Unlike a hedge fund, MicroStrategy does not use margin loans or collateral-backed debt. Therefore, a price drop in Bitcoin will not trigger any forced liquidation. 🙌 (But they might still liquidate their sanity.)

Liquidity and Debt Structure: No Need for Forced Sales

MicroStrategy has taken steps to ensure it remains liquid even if Bitcoin’s price continues to fall. 🏗️ (Or just a very expensive coffee fund.)

The company has set aside $2.188 billion in reserves, which is enough to cover two and a half years of expenses. 🕒 (But what about the next 2.5 years? They’ll probably just sell a few BTC for snacks.)

Additionally, the company’s software business continues to generate significant revenue, reducing the need to sell Bitcoin in the near term. 🧠 (Or just a very expensive coffee fund.)

– Bull Theory (@BullTheoryio) 🐄 (because if this were a cow, it would be milked for all it’s worth).

MicroStrategy also does not face any major debt maturities until 2028. 🗓️ (So they’ve got time to panic… or not.)

This gives the company plenty of time to adapt to changes in the market without needing to sell its Bitcoin. 🧠 (Or just a very expensive coffee fund.)

The company’s debt structure, based on unsecured convertible notes, means that it is not at risk of being forced to liquidate assets in response to price declines. 🛡️ (Unless the stock hits zero. Then it’s a different story.)

Related Reading: MicroStrategy Adds $835M in Bitcoin Amid Market Dip 📈

External Factors Contributing to MSTR’s Decline

Several external factors have also played a role in the recent decline of MicroStrategy’s stock. 🧩 (Like a bad day at the office, but with more crypto.)

In October, MSCI proposed new rules that could remove companies holding large amounts of Bitcoin from its indexes. 🚫 (Because apparently, Bitcoin isn’t “investor-friendly” enough.)

This raised concerns about forced index selling, though no final decision has been made. 🤔 (Or maybe they’re just waiting for the next meme coin to take over.)

Additionally, JPMorgan increased margin requirements for trading MSTR, which led some investors to reduce their positions. 🏦 (Because nothing says “trust” like a bank raising the stakes.)

The introduction of Bitcoin-linked products by other major banks, such as Morgan Stanley and JP Morgan, has also impacted investor interest. 💸 (Because who needs a single stock when you can have a whole portfolio of crypto products?)

These new products have shifted capital away from MicroStrategy, further adding to the downward pressure on the stock. 📉 (And now the fun begins.)

Bearish reports, including those from JP Morgan, have only amplified these fears, creating a cycle of negative sentiment. 🧠 (Or just a very expensive coffee fund.)

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2026-01-01 16:35