Key Insights:
- MicroStrategy’s (MSTR) mNAV has dropped to a new low of 1.06.
- MSTR stock fell more than 1% to $157.10 on Monday.
- Bitcoin price pared earlier gains and fell below $87K.
The largest corporate Bitcoin treasury MicroStrategy (now Strategy) witnessed its key metric, mNAV fall to a record low. This comes after MSTR stock dropped more than 50% in the past three months.
The stock price was trading more than 1% lower on Monday, as Bitcoin price pared earlier gains and fell below $87K.
MicroStrategy (MSTR) mNAV Drops to 1.06 as Bitcoin Falls to $85,000
MicroStrategy’s mNAV, which measures enterprise value against the value of its Bitcoin holdings, has reached a new low of 1.06. This has sparked further concerns among investors.
According to the its dashboard, MicroStrategy’s enterprise value is $63.25 billion. However, Yahoo Finance and other sources show a lower enterprise value of around $60 billion.
MicroStrategy last purchased 10,645 BTC worth $980.3 million, increasing its total holdings to 671,268 BTC. The value of its total Bitcoin holdings fluctuates between $58.50 – $59 billion at the time of writing.
The mNAV dropped to a record low today as Bitcoin fluctuated between $87K and $90K. The price has since recovered slightly to above $87,200.
Experts warn that Bitcoin could fall further in the coming days amid headwinds and macroeconomic pressure.
Moreover, the Bitcoin treasury firm boosted its USD reserves to $2.19 billion instead of buying more BTC. It shows MSCI delisting concerns and mNAV drop are weighing upon investors.
MSTR Stock Drops Further Amid Market Uncertainty
MSTR stock closed down 0.064% at $158.81 on Friday, as investors hope for a Santa Claus rally. However, the stock has dropped more than 1% in pre-market trading hours on Monday.
This further decline shows that investors are increasingly uncertain about MicroStrategy’s Bitcoin strategy, primarily amid worries about a possible MSCI delisting.
MSTR stock is witnessing increased selling pressure amid a rise in options put volume. Trading volume is also below the average trading volume of 16 million.
MSTR stock is down nearly 47% year-to-date (YTD). It has dropped almost 70% from its all-time high in July.
The drop follows heavy dilution of its Class A shares, and some expect the price could fall below $150 this week.
Bitcoin Price Under Selling Pressure
MicroStrategy (MSTR) executive chairman Michael Saylor and CEO Phong Le remain optimistic on MSTR stock and Bitcoin accumulation strategy. Saylor hinted at further Bitcoin purchases.
However, BTC price remains under pressure, with the price trading at $87,267 at the time of writing. The 24-hour low and high were $86,717 and $90,299, respectively.
Furthermore, trading volume has increased further by 192% in the last 24 hours. This indicates massive interest among traders.
CoinGlass data showed selling in the derivatives market in the last few hours. At the time of writing, the total BTC futures open interest tumbled more than 4% in the last 24 hours.
The 4-hour BTC futures open interest on CME and Binance dropped more than 2% and 5%, respectively. The 24-hour BTC futures OI was up 0.80% at $57.89 billion.
 mNAV has dropped to a lowest-ever at 1.06 as MSTR stock tumbled more than 50% in last three months.){kind=link}