Strategy News: A Year After Hitting a Record High, MSTR Stock Has Shed 68%

Strategy's stock price has fallen 68% from its record high of $543 in November 2024, coinciding with a decline in bitcoin, which has dropped from $126,000 to around $81,000. The combination of Strategy's exposure to bitcoin and its subsequent slide has intensified market concerns. Analysts at JPMorgan have flagged the possibility of Strategy being removed from key equity benchmarks like MSCI USA, which could trigger an estimated $2.8 billion in passive investment outflows. The current decline in Strategy’s stock is the second-worst since it adopted a bitcoin treasury strategy in April 2020. Despite the downtrend, Strategy continues to trade above its mNAV of 1.23, indicating that its market value reflects its fundamental business operations, though it had previously traded below this level during the 2022 bear market. Overall, the significant plunge in both Strategy and bitcoin prices indicates volatile conditions likely to affect investor sentiment and market dynamics.

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