MSTR Drops After Bitcoin Falls Near $98.6K, Reigniting Valuation Debate
Bitcoin endured another weak session, easing nearly 3% to about $98,600 and putting fresh pressure on crypto-related equities. MicroStrategy (MSTR), the single largest corporate holder of bitcoin, led decliners with a drop north of 6.6% to trade near $210 — a sharper fall than bitcoin itself, highlighting the tight correlation between spot crypto moves and listed exposure.
The sell-off has reignited an old debate: should MSTR be valued primarily as a proxy for bitcoin or on its own merits as a software and holdings company? For investors using MSTR for bitcoin exposure, the sharper equity swings create additional basis risk and liquidity considerations. Short-term volatility in BTC can amplify equity losses and influence allocation decisions for institutions and retail investors weighing direct crypto holdings versus listed alternatives.