Strategy (MSTR) stock dropped 7.3% on Tuesday to close at $161, just above the critical support level of $149.75. The stock has now fallen more than 70% from its all-time high of $456 set in July last year.
Company Bought 22,305 BTC for $2.13B Last Week
Michael Saylor announced that Strategy accumulated 22,305 Bitcoin at an average price of roughly $95,500, funded by selling common shares. The firm now holds a total of 709,715 BTC, worth over $64 billion at current prices. An SEC filing reveals Strategy still has a large pool of authorized but unissued shares to continue purchasing Bitcoin.
Macro Headwinds and Premium Compression Add Pressure
Bitcoin price breached the key $90,000 support level for the first time in weeks. The sell-off was fueled by President Trump's threat to impose hefty tariffs on European goods, with EU officials warning of retaliation including triggering the anti-coercion instrument. In Japan, government bond yields surged to multi-decade highs as the Bank of Japan is expected to keep hiking rates to fight inflation and a weakening yen. U.S. equity markets also slumped: the Dow Jones dropped over 550 points and the Nasdaq 100 lost more than 320 points.
MSTR's premium over its Bitcoin holdings continued to shrink. The market-cap-based net asset value (NAV) fell to 0.721, while the enterprise-value-based NAV dropped to 0.95, implying the stock is trading near or below the value of its underlying Bitcoin.
Bearish Flag Pattern Forms; $149 Is the Line in the Sand
On the daily chart, MSTR price has fallen below all moving averages, with the Supertrend indicator flashing red. A bearish flag pattern has emerged, a classic continuation signal. A decisive break below the $149 support level would confirm the bearish breakout and could open the door for a decline toward $100.