MSTR stock today tumbles as Bitcoin price crashes – will MicroStrategy sell BTC USD holdings next?

Core Viewpoint - MicroStrategy's stock has experienced significant volatility, primarily driven by the decline in Bitcoin prices, which has raised concerns about the company's financial strategy and future plans [1][10]. Group 1: Stock Performance - MicroStrategy shares fell over 8% as Bitcoin reached its lowest levels in months, acting as a leveraged proxy for the cryptocurrency's decline [1][11]. - The stock has dropped approximately 40% over the past 30 days, trading around $157 [4][12]. - The company's market capitalization has decreased to roughly $45 billion, now below the value of its Bitcoin reserves, which are valued at about $55 billion [6][12]. Group 2: Bitcoin Holdings and Strategy - CEO Phong Le indicated that MicroStrategy might need to sell a portion of its Bitcoin holdings as a "last resort" if its valuation premium over net asset value falls below a critical level [2]. - The company currently holds 650,000 Bitcoin and recently purchased an additional 130 Bitcoin for $11.7 million, funded through the issuance of common shares [6][7][12]. - There is growing investor unease regarding the potential shift away from the company's long-standing strategy of holding Bitcoin indefinitely due to current financial challenges [6][12]. Group 3: Financial Measures - MicroStrategy announced a $1.44 billion cash reserve aimed at protecting dividend and debt payments, although concerns about potential Bitcoin liquidation overshadowed this announcement [3][12].