MicroStrategy(US:MSTR) Hua Er Jie Jian Wen·2025-09-26 06:38Core Viewpoint - The strategy of holding large amounts of cryptocurrency as corporate reserves is facing significant challenges as Bitcoin prices continue to decline, with a recent drop below $110,000 and Ethereum falling below $3,900 [1][4]. Group 1: Market Conditions - The cryptocurrency market is experiencing large-scale liquidations, leading to a significant drop in Bitcoin and Ethereum prices [1]. - In contrast, the price of physical silver has surged, surpassing $45, reaching a fourteen-year high [1]. Group 2: Company-Specific Concerns - Peter Schiff warns that companies holding Bitcoin as an asset are entering a "brutal bear market," raising doubts about the sustainability of their business models [4][5]. - MicroStrategy (MSTR), known for its substantial Bitcoin holdings, has seen its stock price drop significantly, recently falling below $300 for the first time since April, erasing its gains for the year [9][11]. - Despite the stock price decline, MicroStrategy's CEO Michael Saylor remains committed to increasing Bitcoin holdings, having purchased an additional 850 Bitcoins recently, bringing the total to 639,835 Bitcoins at a total acquisition cost of $47.33 billion [12]. Group 3: Financial Risks - The recent Bitcoin purchases by MicroStrategy were partially funded by selling its own stock, raising concerns about the financial risks associated with this strategy during a downturn in asset prices [13]. - Technical analysis indicates a bleak outlook for MSTR's stock price, with warnings that failure to maintain current support levels could lead to further declines, potentially down to $240 [13].