MicroStrategy Shares Plunge as Bitcoin Strategy Faces Market Test

MicroStrategy's substantial Bitcoin investments are facing intense market pressure, with the company's stock experiencing a dramatic selloff. The decline accelerated amid unfounded rumors about Bitcoin liquidations, prompting CEO Michael Saylor to publicly defend the company's strategy. The critical question remains whether his assurances can stabilize the falling share price.

The stock is approaching crucial technical support levels. Share values are nearing the 200-week moving average around $138, representing a significant long-term support threshold. Several Fibonacci retracement markers have already been breached during the downturn.

Multiple factors are compounding the pressure:
• Bitcoin has fallen below $95,000 for the first time in six months
• Diminished expectations for additional Federal Reserve interest rate cuts
• Widespread selling across cryptocurrency markets
• Exceptionally high trading volumes during the decline

As a leveraged Bitcoin investment vehicle, MicroStrategy shares amplify Bitcoin's price movements—both upward and downward. Investors are currently experiencing the strategy's downside potential.

False Rumors Intensify Selling Pressure

Unsubstantiated speculation about Bitcoin sales exacerbated already nervous market conditions. Social media platforms rapidly circulated claims that MicroStrategy had liquidated approximately $1 billion worth of Bitcoin. These rumors originated from observations of substantial Bitcoin transfers from company-controlled wallets visible on blockchain tracking systems.

However, blockchain analyst Ted demonstrated these allegations were unfounded, showing the transactions represented internal wallet reorganizations rather than actual exchange sales. This incident illustrates how rapidly misinformation can spread and impact stock prices when significant cryptocurrency movements occur.

Should investors sell immediately? Or is it worth buying Strategy?

Saylor's Rebuttal: Daily Purchases Continue

Michael Saylor directly addressed the rumors, stating unequivocally during a CNBC interview: "We've been buying Bitcoin every day this week." The CEO further announced the company would accelerate its acquisition strategy despite market volatility.

Key facts support Saylor's position:
• MicroStrategy's current holdings stand at 641,692 Bitcoin valued at approximately $61.4 billion
• Daily Bitcoin purchases continued throughout the recent market turbulence
• Saylor's social media "HODL" posting reinforces the long-term strategic approach
• Corporate debt remains secured for 4.5 years, preserving operational flexibility

The company maintains its aggressive accumulation strategy despite growing market skepticism.

Valuation Premium Evaporates

MicroStrategy's market capitalization is converging dangerously close to the value of its Bitcoin holdings. The ratio between market value and net asset value (mNAV) has contracted dramatically—a development that typically attracts value-oriented investors.

The central uncertainty persists: does this represent a historic buying opportunity or the initial phase of a deeper correction? With shares trading at €171.80—a 52-week low—and having declined over 44% during the past twelve months, market conditions are severely testing the conviction of Saylor's investment followers.