"Shares of MicroStrategy ( NASDAQ: MSTR) are down 40% from October highs, mirroring Bitcoin's decline from its $104,050 peak on November 13 to $90,903 today. The collapse triggered a dramatic shift in retail sentiment, with Reddit's r/WallStreetBets turning decisively bearish. Technical indicators confirm the carnage: MSTR's 14-day RSI hit 23.57 on November 21, the most oversold reading in recent history, while trading volume spiked to nearly 30 million shares that day, triple typical levels."
"The post detailed how MicroStrategy promises roughly $700 million in annual dividends while CEO Michael Saylor has vowed never to sell Bitcoin. The author warned: "The moment they just sit on this pile of bitcoin that doesn't generate any dividends while their fund raising stalls is the moment where people will realize that you need to also be able to sell an asset that you borrow against.""
MicroStrategy shares fell about 40% from October highs as Bitcoin declined from a $104,050 peak on November 13 to $90,903. Retail sentiment shifted strongly bearish, with r/WallStreetBets turning negative and sentiment scores between 12 and 38 on a 100-point scale. Technicals showed extreme weakness: a 14-day RSI of 23.57 on November 21 and trading volume near 30 million shares that day, triple normal levels. A single-session Bitcoin crash of 13.5% on November 21 intensified the selloff, and MicroStrategy's 3.37 beta amplified losses. High valuation metrics, including a 107.2x price-to-sales ratio, and $700 million annual dividends raised sustainability concerns.
Read at 24/7 Wall St.
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