JUST IN: Michael Saylor says "Bitcoin volatility is a feature, not a bug." https://t.co/lNKWRPZh0g ...

Coinbase’s (COIN) recent slump is an “air pocket,” not a warning sign, investment bank William Blair said in a report on Monday. The bank reiterated its outperform rating on the stock and urged investors to treat the crypto sell-off as a buying opportunity. Coinbase shares were 2.6% higher in early trading, at $246.53. The report made the same argument for outperform-rated Circle (CRCL), down nearly 80% from its 52-week high even as USDC’s market cap holds firm. With both firms tied to USDC, William Bl ...

Core Insights - Bitcoin's recent drop below $90,000 has negatively impacted nearly all investors, including Strategy, a major corporate Bitcoin holder [1][2] - Michael Saylor, the executive chairman of Strategy, remains confident, asserting that the company can endure an 80%-90% decline in Bitcoin value [2][6] Company Valuation Metrics - Strategy's mNAV (multiple to net asset value) has fallen below 1, a concerning indicator for Bitcoin treasury firms, as it suggests the company's enterprise value is less than its Bitcoin holdings [5][6] - Analysts indicate that an mNAV below 1 is unsustainable for companies in the Bitcoin treasury sector, raising questions about their operational viability [6] Market Dynamics and Volatility - Saylor emphasizes that Bitcoin's historical volatility is part of its cycle, noting that it has experienced 15 significant drawdowns in its 15-year history but has consistently reached new all-time highs [3] - The annualized volatility of Bitcoin has decreased from approximately 80% in 2020 to around 50% today, according to Saylor [3] Debt and Liquidation Concerns - Saylor reassures that Strategy's debts are convertible, which means that even in a worst-case scenario where Bitcoin's value drops to zero, lenders cannot force liquidation of the company's holdings [4] - Analysts caution that the real issue lies in whether Strategy can continue to operate with its stock trading below the value of its Bitcoin assets [4][6] mNAV Implications - An mNAV greater than 1 indicates that investors are willing to pay a premium for the company's Bitcoin, allowing for easier capital raising through stock sales [7] - An mNAV equal to 1 means the market values the company at parity with its Bitcoin holdings, while an mNAV below 1 suggests that investors perceive the company as worth less than its Bitcoin assets [7]

Market Overview - The cryptocurrency market capitalization has decreased by 0.8%, now at $4.23 trillion, with 75 of the top 100 coins experiencing price drops over the past 24 hours [1][2] - Total crypto trading volume is reported at $206 billion, which is higher than the previous few days [1] Price Movements - Bitcoin (BTC) has fallen by 0.5%, currently trading at $121,142, while Ethereum (ETH) has decreased by 1.9% to $4,332 [2][3] - Among the top 100 coins, the highest drop was recorded by Mantle (MNT) at 17.3%, now trading at $2.22, while Dogecoin (DOGE) is the only gainer, appreciating by 0.5% to $0.2481 [4] Market Sentiment and Volatility - Market sentiment remains mostly unchanged within the neutral zone, with many institutional participants maintaining exposure but avoiding significant portfolio expansion [2] - Increased anticipation of significant price movements is noted, with implied volatilities for Bitcoin reaching their highest levels in 30 days, driven by expectations of a 25 basis point rate cut by the US Federal Reserve [5] - A potential upward push in Bitcoin could trigger liquidations of short positions, possibly propelling BTC back toward $125,000 and beyond [5]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Strategy Incorporated (NASDAQ:MSTR) due to a class action complaint alleging breaches of fiduciary duties by the board of directors during the specified class period [1][2]. Group 1: Legal Investigation - The law firm is encouraging long-term stockholders of Strategy who suffered losses between April 30, 2024, and April 4, 2025, to discuss their legal rights [1]. - A class action complaint was filed on May 16, 2025, concerning the alleged misleading statements made by the company's management regarding its business and operations [2]. Group 2: Allegations Against Management - The complaint claims that the anticipated profitability of Strategy's bitcoin-focused investment strategy was overstated [2]. - It is alleged that the risks associated with bitcoin's volatility and potential losses on digital assets were understated, leading to materially false and misleading public statements [2]. Group 3: Contact Information - Long-term stockholders with information or questions regarding the claims can contact the law firm directly via phone or email [3][6].