- MicroStrategy stock has plunged roughly 70% from its November 2024 high, making it one of the market’s worst performers over the past eight months.
- The company’s strategy of aggressively buying Bitcoin with capital market proceeds faces sustainability concerns as its share price declines.
- Analysts remain divided, with price targets like the $500 from Maxim Group signaling high potential despite the current bleak outlook for 2026.
- The firm’s ability to fund further Bitcoin purchases hinges on its stock price staying high enough to maintain a multiple to net asset value above 1.
MicroStrategy stock has been arguably one of the worst performers on the US stock market in the past 8 months, suffering consecutive declines. The Michael Saylor-led firm’s Bitcoin-focused investment plan, once a driver of record highs, has now precipitated a steep fall from grace.
Consequently, the stock now trades below $130, down roughly 70% from its November 2024 peak of around $540. By the end of 2025, it had fallen 48% for the year, marking its second-worst annual performance on record.
The company’s multiple to net asset value remains above 1 at 1.09, allowing it to continue selling stock to buy Bitcoin. However, if the stock drops further, future Bitcoin purchases are likely to be smaller and may pause entirely if the mNAV falls below 1.
Furthermore, analysts express concerns regarding MicroStrategy’s sustainability as its Bitcoin accumulation strategy increases reliance on capital markets. This reliance potentially erodes shareholder value, creating significant headwinds.
Meanwhile, crypto bills and regulatory decisions in the US have helped crypto stocks like MicroStrategy and Coinbase in recent months. Should new bills favoring crypto be passed, cryptocurrencies like BTC and ETH could rally, lifting related stocks.
Analysts are optimistic about MicroStrategy’s potential, with several maintaining high price targets well above the current price. Maxim Group leads with a $500 target, indicating significant upside potential despite the current bleak outlook for the rest of 2026.
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