MicroStrategy stock drops 60% from peak as mNAV approaches 1

Core Insights - Strategy (formerly MicroStrategy) has experienced a significant decline in stock value, dropping 60% from its peak, with current trading at $224.20 compared to an all-time high of $543 [1] - The decline in stock value coincides with a more than 10% decrease in Bitcoin's price over the past month [1] Financial Metrics - The multiple-to-net-asset-value (mNAV) for Strategy is approaching 1x, raising concerns among investors, particularly noted by short-seller Jim Chanos [2] - When mNAV reaches 1.0x, the company's shares will be valued equal to its Bitcoin holdings, indicating potential undervaluation if it falls below this threshold [3] - Currently, the mNAV stands at 1.22, suggesting that the stock is still valued above its Bitcoin holdings [4] Market Dynamics - Analysts suggest that if mNAV drops below 1, Strategy may be incentivized to sell Bitcoin to repurchase equity, although this is not guaranteed [5] - There are speculations that Wall Street may be attempting to pressure Strategy into selling its Bitcoin holdings for acquisition purposes [5] - Historical trends indicate that Bitcoin's price movements have closely followed those of Strategy since 2020, with both currently trading below their weekly 50-SMA [6]