MicroStrategy struggles ahead of earnings after latest Bitcoin crash

Market Overview - The crypto market has faced significant pressure in 2026, particularly following a flash crash on October 10, 2025, with Bitcoin (BTC) dropping below $73,000 on February 3, marking its worst crash since early November 2024 [1] Liquidation Events - Over the last 24 hours, more than $660 million in crypto positions were liquidated, including $526.5 million in long positions and $135 million in short positions, with Bitcoin leading at $112.7 million and Ethereum (ETH) at $96.5 million [2] - A notable liquidation order of $6 million for ETH/USDT on Binance was recorded as the largest single liquidation order in the past 24 hours [3] MicroStrategy's Bitcoin Strategy - MicroStrategy, co-founded by Michael Saylor, transitioned from a software company to a Bitcoin-focused digital asset treasury (DAT) during the COVID-19 pandemic, holding 713,502 Bitcoin on its balance sheet [4][5] - The company's market Net Asset Value (mNAV) previously indicated a premium over Bitcoin's per-share value, attracting traders to buy MSTR shares instead of Bitcoin directly. However, following the crash in October 2025, mNAV approached 1, resulting in a negligible premium [6] Industry Concerns - The trend of companies like MicroStrategy holding significant crypto assets has raised concerns among traditional players such as MSCI, which is considering whether DATs with over 50% of their balance sheet in crypto should remain on stock indices [7] - Michael Saylor has criticized MSCI's proposal as "discriminatory, arbitrary, and unworkable," defending the company's strategy [9]