Strategy’s Latest Bitcoin Buy Drops Average by $25 —Why MSTR Stock Could Drop More

Core Viewpoint - MicroStrategy's stock experienced a decline of nearly 4% despite positive corporate news and a recent Bitcoin purchase, indicating underlying selling pressure and potential risks ahead [1]. Group 1: Bitcoin Acquisition - MicroStrategy purchased 2,486 Bitcoin at an average price of $67,710, increasing total holdings from 714,644 BTC to 717,131 BTC [2]. - The recent acquisition lowered MicroStrategy's average Bitcoin cost basis from $76,052 to $76,027, resulting in a $25 reduction [3]. - Although the balance sheet shows slight improvement, the average cost remains significantly above $76,000, which is higher than many previous acquisitions [5]. Group 2: Investor Sentiment and Market Indicators - The Chaikin Money Flow (CMF) indicator, which reflects large investor behavior, has been trending lower and is close to breaking below zero, indicating weak capital inflows [6][7]. - Despite the Bitcoin purchase, large investors are not aggressively accumulating MicroStrategy stock, suggesting a lack of confidence in the stock's performance [7]. - Momentum analysis using the Relative Strength Index (RSI) indicates a hidden bearish divergence, warning of potential price corrections for MicroStrategy [10].