The broader stock and crypto markets were under pressure after President Trump’s announcement of 15% tariffs on all goods coming into the U.S.
- MSTR’s stock dropped as much as 3.75% in overnight trade, alongside Bitcoin’s drop to below $65,000.
- On Stocktwits, retail sentiment around the Bitcoin proxy fell to ‘bearish’ from ‘neutral’ territory over the past day.
- MSTR’s average cost per Bitcoin stands at $76,000, more than 14% below Bitcoin’s current trading price.
Strategy (MSTR) executive chairman Michael Saylor signaled in a cryptic post on X that the company is set to complete its 100th Bitcoin (BTC) purchase on Monday, when it typically discloses its weekly acquisitions.
“The Orange Century,” he wrote on the social media platform. MSTR’s stock was down as much as 3.75% on Sunday night, while retail sentiment around the shares dipped to ‘bearish’ from ‘neutral’ territory over the past day, as per Stocktwits data.
Bitcoin’s Price Slumps To $65K
MSTR’s stock is known for trading like a proxy for Bitcoin, moving higher and lower alongside the cryptocurrency’s price. Bitcoin’s price slipped below $65,000 on Sunday night, down 4.5% in the last 24 hours amid a broader slump in markets after President Donald Trump announced that he would be implementing a 15% tariff on all goods coming into the U.S. despite the Supreme Court slashing down his previous import taxes.
BTC’s price slipped as low as $64,200 during the sessions before recuperating to around $64,980. On Stocktwits, retail sentiment around the apex cryptocurrency trended in ‘bearish’ territory over the past day on Stocktwits.
MSTR’s Bitcoin Treasury
Strategy has 717,131 BTC in its treasury as of last week, valued at around around $46 million as per Bitcoin’s current price. Investors have been voicing dilution concerns with the cryptocurrency trading below MSTR’s average cost per Bitcoin of over $76,000, which puts its holdings at an unrealized loss of around 14.65%.
During the company’s latest quarterly earnings call, CEO Phong Le said MSTR’s balance sheet is robust enough to handle losses even if Bitcoin’s price falls to $8,000. However, critics argue this would still leave the company sitting on tens of billions in losses.
What Is Retail Saying About MSTR Stock?
One user on Stocktwits anticipates that this week will kick off the “next major leg” of the downtrend in MSTR’s stock price.
Another said there was no point in investing in MSTR’s stock when gold is performing better amid the current geopolitical tensions.
https://www.stocktwits.com/Reanimated666/message/645569887
According to ‘The Big Short’ investor Michael Burry, Bitcoin’s price falling to $50,000 could trigger a death spiral for companies like Strategy, which are primarily holding Bitcoin on its balance sheet.
MSTR’s stock has fallen 15% this year, while Bitcoin’s price is down nearly 26%.
Read also: Bitcoin Slumps Under $65K, Ethereum Underperforms After Trump’s 15% Tariff Announcement
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