cyrpto BTC, drop, Falls, MSTR, plummets, Premium, price, Stock Mark February 25, 2025 0 Comments

MSTR stock falls 5% as premium plummets to 1.6 after BTC price drop

The strategy, formerly Microstrategy, saw its MSTR drop more than 5%. Not only that, the MSTR market capitalization ratio and its Bitcoin holdings fell to 1.6 after BTC dropped below $ 90,000.

According to data On Yahoo Finance, Strategy Actions decreased by 5.65% in pre-commercial trade. The price of the strategy amounts to $ 282.76 at the end of today’s shares at 4:00 p.m.. The assessment of the actions of the strategy would have been triggered by Bitcoin (BTC)) The drop in prices, which fall As low as $ 87,630 on February 25.

The fall of Bitcoin has not only an impact on the course of the strategy, but also its premium ratio. Michael Saylor’s firm has long been close to Bitcoin, because it is famous for being the biggest BTC business holder. The software developer company has had more than 2% of the total BTC offer since the end of 2024. Recently, it bought 20,356 Bitcoin, worth almost $ 2 billion at the time of purchase.

Unfortunately for the company, the Crypto Miles Deutscher analyst said that the strategy may have to retain his Bitcoin shopping trip after the recent prices dive.

The premium of $ MstrateThe market capitalization of its underlying $ BTC Holdings collapsed from 3.4 in November at only 1.6 now.

The lower this number, the more difficult it will be for Saylor to lift more capital to $ BTC purchases.

It seems that he will have to slow down his pace. pic.twitter.com/yljeaghyot

– Miles Deutscher (@milesdeutscher) February 25, 2025

Based on Deutscher’s analysis, the premium market capitalization ratio of MSTR / Bitcoin Holdings fell away from its peak of 3.4 in November at only 1.6 on February 25. This means that the market value of the action is now closer to the real value of its Bitcoin farms, instead of being high by high prices.

“The lower this number, the more difficult it will be to raise more capital for BTC purchases,” said Deutscher in his recent job.

Due to the drop in Bitcoin prices, the company will have more difficulty in issuing shares or using its actions to generate the funds necessary to buy more bitcoin if BTC does not bounce so early. In addition, investors will not be willing to pay more than the current intrinsic value of Bitcoin, thus limiting Saylor’s capacity to raise capital.

As before reported By crypto.News, Bitcoin dropped by 6.78% on February 25. Matrixport analysts have warned that BTC could be deeper, in particular with low commercial activity limiting the purchase purchase demand.