Bitcoin News Update: MicroStrategy's Bold Crypto Bet Falters as Shares Plunge 53% Due to Investor Skepticism

MicroStrategy Inc. (NASDAQ: MSTR), once celebrated during the

(BTC) bull run, has experienced a 53% drop in its share price from its recent peak, reflecting a wider downturn among stocks tied to the cryptocurrency sector. This sharp decline has fueled doubts among investors regarding the company’s approach of heavily investing in Bitcoin, with shares now hovering around $270—significantly lower than its 52-week high of $543, as reported by . At the same time, leading meme-inspired digital assets (DATs) have plunged over 80% so far this year, signaling reduced interest from retail traders and challenging macroeconomic conditions.

The most recent setback followed MSTR’s Q3 2025 earnings release. Despite posting a record earnings per share of $8.42, largely due to mark-to-market gains on Bitcoin, the results failed to restore investor confidence. Shares slid 4.16% after the announcement, ending at $270.07. The company’s financials underscore its dependence on cryptocurrency: it holds 628,791 Bitcoins, valued at $74 billion, which form the backbone of its balance sheet. However, as Bitcoin’s price dipped below $107,000 in late October—an 8% drop from its high—MSTR’s market value contracted by $18 billion.

Experts point out that the stock’s price swings are closely tied to Bitcoin’s movements. “MSTR’s current valuation is now almost entirely based on its Bitcoin reserves, with little speculative premium left,” said Markus Thielen of 10X Research. He believes a rebound is possible if the company reports a $3.6 billion profit from mark-to-market gains in its next earnings, according to the TS2 Tech report. Thielen also mentioned that being added to the S&P 500 could bring in $28 billion in investment flows, but the stock is currently trading below its net asset value (NAV).

Wider market forces have worsened the sell-off. The Federal Reserve’s hawkish stance and delayed rate cuts have driven bond yields up and pushed riskier assets down. At the same time, ongoing regulatory uncertainty and a bleak macro outlook for crypto have weighed on related stocks. With a beta of 3.8, MSTR’s shares are even more volatile than Bitcoin itself. In October, the stock fell 20%, including a single-day drop of 7.5% as Bitcoin slipped below $107,000.

Despite these challenges, MicroStrategy’s leadership remains optimistic. CEO Phong Le reaffirmed a $150,000 Bitcoin price target by the end of 2025, expecting a 30% return on the company’s BTC holdings. The company has also raised $18.3 billion in capital this year, issuing preferred stock and convertible bonds to finance additional Bitcoin acquisitions. Still, some critics question the sustainability of this approach. Short-seller Kerrisdale Capital has taken a bearish position on

, arguing that any premium above NAV cannot be justified under current market conditions.

Technical analysis points to further downside risk. MSTR is currently testing a key support level near $260; a break below could see the stock fall to the $240–$230 range, levels not seen since before its 2024 rally, according to the TS2 Tech report. The Supertrend indicator has turned negative, and the 20-day, 50-day, and 200-day EMAs are now acting as resistance. On the other hand, a move above $305–$320 could revive bullish momentum, targeting the $350 and $387 Fibonacci retracement levels.

The outlook remains unpredictable. While Wall Street analysts still rate the stock as a “Strong Buy” with an average price target around $493, significant short-term volatility is anticipated. Prediction markets currently give only an 18% chance of an earnings beat, reflecting doubts about a Bitcoin recovery. For now, MSTR’s trajectory is tightly bound to the next moves in the crypto market—a high-risk bet for investors.