Why Is MSTR Stock Price Down 7.7% Today? 42% June Plunge Rocks $64 Billion Bitcoin Bet

MSTR remains under intense pressure after Strategy (formerly MicroStrategy) shares tumbled another 7.7% on Tuesday amid Bitcoin’s market struggles. This has led to an extension of one of the company's worst monthly performances on record as investors continue to reassess Michael Saylor's massive corporate Bitcoin strategy.

The latest decline comes after an extraordinarily volatile June that has seen MSTR lose roughly 42% of its value, marking its worst monthly performance since 2022. Not only has June been red for the MSTR stock, but it is just one of the 11 months straight of decline that the Strategy stock has suffered over the last year. The prolonged sell-off has actually coincided with a sharp correction in Bitcoin, which is also heading for its third consecutive negative quarter after dropping below $60,000.

MSTR Suffers Historic Slide as Bitcoin Weakness Continues

The latest MSTR price weakness follows a brief relief rally on Monday after Strategy unveiled a new capital management framework that authorizes up to $1.25 billion in potential Bitcoin sales while also approving $2 billion in combined share repurchases, Wealthier Today reported. Although the announcement initially lifted investor sentiment, selling pressure quickly returned as Bitcoin remained under pressure.

The daily decline is not even at the top of the list of worries for Strategy’s MSTR stock, given the current circumstances. Bitcoin has become central to the company’s value proposition, and with the digital asset’s price crashing over the last year, MSTR has not been left out. Both MSTR and Bitcoin have been highly correlated in their performances, with the BTC price down 45% to MSTR’s 42% decline in one year. The recent collapse just shows how much MSTR has become tied to Bitcoin.

With over $60 billion in the hole already, investors now view Strategy as a leveraged way to gain exposure to the world's largest cryptocurrency. However, this means that when the Bitcoin price rallied, MSTR frequently outperformed other stocks. But when the BTC price failed, MSTR followed the same route.

Despite the recent sell-off, Strategy continues to hold one of the largest Bitcoin treasuries in corporate history. The company remains the world's largest corporate holder of Bitcoin, controlling approximately 847,000 BTC, costing around $64 billion to acquire over the last five years.

However, with Bitcoin still struggling to regain momentum and liquidity becoming more difficult to secure for the crypto industry, investors are watching closely to see whether MSTR can recover from one of its toughest periods since adopting its cryptocurrency-focused strategy.

Pressures Continue To Pile Onto Strategy

The Bitcoin price crash is already putting a lot of pressure on Strategy’s MSTR stock, but if the sell-off continues, this may only be the start. According to data, this is the first time since 2024 that the MSTR price has fallen below $100, eventually pushing below $90 to its current price at around $83 at the time of this writing.

On the Bitcoin treasury angle, the average Strategy buy price on its massive BTC holdings currently sits at $75,646. This means that for each Bitcoin the company holds, it is losing around $17,000. At the current price, Strategy BTC stash is nursing losses of more than $14 billion, according to data from Bitcoin Treasuries.

This underperformance might explain the reason behind Strategy’s change in its Bitcoin philosophy. Last month, the company sold Bitcoin for the first time since 2022, selling off $2.5 billion worth of BTC. This marked the second time in history that the company has sold BTC. With its most recent Bitcoin Monetization Program, Strategy might be looking at more BTC sell-offs, which could negatively impact the price of Bitcoin, and as a result, send the MSTR price lower due to the correlation.