- MicroStrategy’s stock diverges sharply from Bitcoin, dropping nearly 50% despite Bitcoin’s 3% gain and new price record.
- The decoupling intensified after MicroStrategy’s inclusion in the Nasdaq 100, conflicting with the index’s positive performance.
In an unexpected turn for early 2025, MicroStrategy (MSTR), a leading holder of Bitcoin, has seen its stock prices decouple from Bitcoin’s market movements.
While MicroStrategy’s stock plummeted by nearly 50% from its high of $543 recorded just over a month ago, Bitcoin has appreciated by 3%.
This divergence grew more pronounced as Bitcoin hit a new high of over $108,000 in mid-December, marking a stark contrast to MicroStrategy’s stock trajectory.
Continuing with MicroStrategy (MSTR) reports in ETHNews, MicroStrategy’s recent inclusion in the Nasdaq 100 has not mirrored the positive performance typically associated with this index. Over the past year, there was a strong correlation between MSTR and BTC, but this has shifted dramatically in the last month.
Key corporate decisions, such as taking on more debt and proposing to increase the number of authorized shares from 330 million to 10 billion, have stirred market anxieties.
The Kobeissi Letter, a capital markets newsletter, points out that these moves have raised concerns about potential share dilution. If the plan to increase shares is approved, it may dilute existing shareholder value.
Conversely, if rejected, it could curb MicroStrategy’s ability to further leverage its Bitcoin strategy through debt financing.
The situation sets a complex stage for both founder Michael Saylor and shareholders. With Saylor controlling 46.8% of the voting power, he needs a minimal additional shareholder agreement to pass the proposal.
Market sentiment appears to lean towards an approval of the increase, factoring in the anticipated dilution.
Current MicroStrategy (MSTR) Price Analysis
MicroStrategy (MSTR) is currently trading at $300.01 USD, reflecting a strong daily increase of 3.59% at the close of the market. After-hours trading shows a further gain of 0.57%, bringing the price to $301.71 USD.
The stock has a market capitalization of $73.64 billion USD, with robust trading activity reflected by a daily volume of 17.8 million shares against an average volume of 27.5 million shares.
Price Movements:
- MSTR traded within a daily range of $292.32 USD to $310.80 USD, showcasing significant volatility during the session.
- The stock’s 52-week range is between $43.87 USD and $543.00 USD, highlighting a substantial recovery trajectory over the past year.
In the short term, MSTR is expected to trade within the range of $295 to $310 USD, depending on Bitcoin’s price trajectory and broader market conditions. A breakout above $310 could push the stock toward $330 USD, while a failure to hold $295 may lead to a decline toward $280 USD.
