Why Is Michael Saylor's Strategy (MSTR) Down Today?

"The broader crypto market is under pressure. Bitcoin slipped roughly 2% over the past 24 hours, retreating from recent highs. That drop is rippling into crypto-linked equities - Strategy is one of the most exposed. Strategy (MSTR) is currently trading at $319.84 Strategy, co-founded by Michael Saylor, reported $3.9 billion in fair value gains for the third quarter of this year."

"Recently, in a wide-ranging conversation with Bitcoin Magazine, Saylor sketched out an "endgame" where his firm builds a trillion-dollar bitcoin balance sheet - and then uses that capital base to help reinvent the global credit system. Like Strategy, institutional adoption of digital assets is expected to surge, with State Street research showing average portfolio exposure was expected to rise from 7% to 16% within three years."

"But analysts remain bullish. Benchmark's Mark Palmer kept a Buy rating and a $705 target, arguing that recent pressure is more about a contracting premium and macro volatility than a flawed strategy. A $705 price target is more than double the stock's current price. Palmer said the company's bitcoin-linked perpetual preferred shares provide permanent, non-dilutive capital and eliminate refinancing risks tied to bitcoin's volatility. Despite some stock drops, Benchmark highlighted Strategy's 640,031 BTC treasury and structural advantages as key long-term strengths"

Shares of Strategy (MSTR) fell about 3.6% as Bitcoin slid roughly 2% over the past 24 hours, dragging crypto-linked equities lower. Strategy is trading near $319.84 and holds roughly 640,000 Bitcoin with an average purchase price of $73,983 per coin, producing $3.9 billion in third-quarter fair value gains. The stock is increasingly viewed as a near-pure Bitcoin play, reducing its multiple relative to BTC holdings and amplifying downside when Bitcoin falls. Michael Saylor envisions a trillion-dollar bitcoin balance sheet to reshape global credit. Institutional adoption forecasts and a bullish $705 analyst target contrast with fragile market sentiment.

Read at Bitcoin Magazine