MSTR Stock Plunges 64%, Tests Support as Bitcoin Woes Continue

MicroStrategy stock down 64% but holds Bitcoin worth billions despite bearish pressure.

  • MicroStrategy (MSTR) stock has fallen 64% in six months, finding resistance just above $100.
  • The company holds $63 billion in Bitcoin, buying another $264 million during the recent dip.
  • Analysts call the Bitcoin sell-off a temporary “crisis of confidence” and see a weak bear case.
  • Positive US crypto regulation could lift BTC and related stocks like MSTR and Coinbase (COIN).
  • Concerns persist over MicroStrategy’s market reliance from its aggressive Bitcoin accumulation strategy.

In early 2026, MicroStrategy’s (MSTR) stock has plunged 64% over six months, mirroring Bitcoin’s 22% monthly decline as the digital asset struggles above $70,000. However, shares have found a floor above $100, preventing further immediate losses according to market data.

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Consequently, analysts like Gautam Chhugani from Bernstein suggest the downturn is temporary. “The current Bitcoin Price action is a mere crisis of confidence. Nothing broke, no skeletons will show up,” he noted in a recent report.

Meanwhile, MicroStrategy continues its aggressive strategy, acquiring an additional $264 million worth of Bitcoin during this low period. The firm founded by Michael Saylor now holds 712,647 BTC, valued at approximately $63 billion.

Furthermore, the company anticipates Bitcoin will rebound above $100,000. However, analysts express concerns that this accumulation strategy increases reliance on capital markets, potentially eroding shareholder value.

Additionally, recent US regulatory decisions have benefited crypto stocks like MSTR and Coinbase. Should new pro-crypto bills pass, assets like BTC and ETH could rally, lifting related stocks higher.

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Finally, Chhugani added, “In an AI world, Bitcoin and crypto are not interesting enough,” while still asserting the “Bitcoin bear case is the weakest in its history.” Despite this, the outlook for the rest of 2026 remains bleak.

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