MSTR stock is down almost 70% from its all-time high (ATH), with a 51% drawdown happening in the last three months. Strategy (formerly MicroStrategy) even hinted at bracing for Bitcoin price crash as it boosted USD reserves instead of more BTC buy, with MSCI delisting concerns weighing upon investors.
MSTR Stock Price in Heavy Selling Pressure: On-Chain Data
Strategy, the largest corporate Bitcoin buyer, sold almost $748 million in MSTR shares last week, boosting cash reserves to $2.19 billion. However, the company signaled a pause in BTC purchases amid further jitters over a Bitcoin price crash.
According to CryptoQuant on-chain data, MSTR stock has experienced repeated drawdowns during market downturns, indicating its high volatility tied to Bitcoin exposure. Strategy stock is under continued downside risk amid heavy dilution pressure.
The stock has tumbled nearly 70% from its all-time high. The dilution has exposed investors to significant risks as the stock saw a 51% drop following the October crypto market crash.
As per Google Finance’s year-to-date returns data, MSTR stock is down 47.10%, while Bitcoin is down 5.02%.
Rising Bearish Outlook on Strategy
MSTR stock has experienced a sharp correction in tandem with massive Bitcoin selloffs, but the company continued to acquire BTC. This caused Strategy’s unrealized profit to decrease from $30 billion to almost $9.2 at the time of writing.
Moreover, risks of MSCI delisting and Bitcoin holdings selling have prompted a bearish outlook on MSTR stock. Today, the ratio of its enterprise value to the value of its Bitcoin holdings, known as mNAV, has dropped to 1.06.
While executive chairman Michael Saylor and CEO Phong Le addressed MSCI delisting concerns among investors, the rising put volume shows MSTR stock fall risks remain intact.
Total put options volume has increased to 323,674 against total call volume of 257,076. The put/call ratio has jumped to 1.26, according to Barchart data. Meanwhile, the put/call open interest ratio is at 0.76.
Today’s $27 billion in crypto options expiry will determine further price direction in Bitcoin and MSTR stock. Meanwhile, analysts remain divided on MSTR’s future trajectory, but bulls argue that a recovery in Bitcoin prices could quickly boost bullish sentiment for MSTR. CEO Michael Saylor’s continued commitment to Bitcoin as a primary treasury asset.
BTC price is currently trading at $88,720. The 24-hour low and high are $86,866 and $89,459.43, respectively. Furthermore, trading volume has increased by 54% over the last 24 hours, indicating rising interest among traders.
