Reasons Behind Strategy’s Stock Price Drop
Strategy’s stock has basically nosedived from about $457 to $152 in just the past few months, right? That’s a jaw-dropping nearly 66% drop, wiping out around $90 billion in market value. What in the world happened?
A few key reasons are making the rounds: dilution risks, index-related risks, and a shrinking premium compared to net asset value (NAV). Even with $59 billion in Bitcoin — which is more than its market cap of roughly $46 billion — the market’s been spooked. As the NAV premium shrank, investors recalibrated how much they were willing to pay over the company’s Bitcoin stash, leading to a massive sell-off.
Analysts have noted that the sell-off wasn’t just a knee-jerk reaction to Bitcoin’s wider pullback; it was also fueled…
