Microstrategy stock risks to $100 as Bitcoin exposure grows

Investors are reassessing risk after a new filing detailed the scale of the Microstrategy stock exposure to Bitcoin and its latest share sale program.

Microstrategy stock slides as Bitcoin erases 2025 gains

The MicroStrategy stock price has extended its sharp decline, with MSTR dropping to $160, far below its all-time high of $542 and its 2025 peak of $455. This sustained sell-off has already wiped out billions of dollars in market value. Moreover, analysts warn that the downtrend could persist in the near term if crypto markets remain under pressure.

The latest slide comes as Bitcoin has given up its year-to-date gains. On Monday, the leading cryptocurrency fell to $87,000, reversing the rally seen earlier in the week. However, the weakness in digital assets has amplified concerns around Strategy’s leveraged exposure to Bitcoin and the sensitivity of its equity value to further downside.

New Bitcoin purchases and growing concentration risk

In a new statement, Strategy disclosed that it bought 2,932 Bitcoin last week for a total of $254 million. The company said it paid an average price of $90,000 per coin, adding to an already massive balance sheet position. Moreover, the latest acquisition underscores management’s continued conviction in Bitcoin despite rising volatility.

After this purchase, Strategy now holds 712,647 Bitcoins, which the company values at more than $62 billion at current prices. That stash represents over 3.3% of Bitcoin’s total supply, highlighting an unprecedented concentration of corporate ownership. However, this scale of exposure also amplifies bitcoin accumulation risks if the market enters a deeper corrective phase.

mNAV policy shift and shareholder dilution

The aggressive Bitcoin buying is happening while the firm’s market net asset value, or mNAV, has dropped below 1. In previous cycles, Strategy had indicated it would avoid selling new shares when mNAV traded below 12. That said, the current strategy appears to depart from that earlier guidance, raising questions about capital allocation discipline.

At the same time, the company has been issuing ordinary shares to finance its cryptocurrency purchases. This approach is significantly diluting existing investors, as the outstanding share count has surged from below 80 million in 2021 to about 300 million today. Moreover, these Microstrategy dilution concerns are now a central theme in equity research commentary on the name.

Bitcoin weakness compounds downside risk for MSTR

The current Microstrategy stock trajectory remains closely tied to movements in the Bitcoin market. With the coin falling to $87,000 on Monday, analysts note that all the gains made earlier in the week have been erased.

Moreover, exchange-traded fund Bitcoin products have seen rising outflows, signaling waning institutional demand and deteriorating sentiment.

Technical analysts point out that Bitcoin has formed a bearish flag pattern, characterized by a steep initial drop followed by a consolidation channel that often precedes another leg lower. However, if that pattern plays out fully, it could trigger a broader Bitcoin price crash, further pressuring risk assets with high crypto exposure such as Strategy.

A sharp move lower in Bitcoin would likely translate into deeper equity losses for Strategy, given its large direct holdings and correlated revenue narrative. The company already flagged a substantial hit to its financials, recently disclosing a $17 billion loss in the fourth quarter. Moreover, any extended downturn in digital asset prices could force additional impairments and weigh on investor confidence.

MSTR stock price technical analysis points to $100

The daily chart shows the Strategy share price locked in a strong bearish trend over recent months. The stock has broken below a key support zone at $228, which marked its lowest level on March 10 last year. Moreover, that breakdown has confirmed a shift in market structure from consolidation to a more aggressive downtrend.

On the same timeframe, MSTR continues to trade below all major moving averages, reinforcing the negative momentum bias. The price action has also carved out a bearish flag pattern, mirroring the structure visible on Bitcoin’s chart. However, technical strategists warn that this configuration typically resolves with another leg lower after a period of short-term consolidation.

Based on this setup, sellers are now targeting the psychological $100 area as a key downside objective. A drop to that level would represent a further decline of roughly 40% from the current share price. Moreover, such a move would intensify scrutiny of Strategy’s balance sheet leverage and long-term sustainability of its Bitcoin-centric capital allocation approach.

In summary, Strategy’s expanding Bitcoin position, ongoing share dilution and deteriorating technical picture leave MSTR vulnerable to further volatility, especially if crypto markets stage another sharp leg lower.