Core Viewpoint - Retail investors who heavily invested in Michael Saylor's Bitcoin strategy are now facing significant losses as the cryptocurrency market has plummeted, leading to a drastic decline in the stock price of Strategy, which has dropped over 60% from recent highs [1][2][4]. Group 1: Company Actions and Financials - Strategy announced the establishment of a $1.4 billion reserve fund on November 3 to cover dividends and interest payments, aiming to alleviate market concerns about potential forced Bitcoin sales if prices continue to fall [1][4]. - The company's stock has seen a 34% decline in November, with Bitcoin prices also down approximately 30% from early October, currently trading around $87,000 [2][8]. - The market net asset value (mNAV) ratio for Strategy has dropped to about 1.15, a level previously flagged as a warning zone by executives, indicating potential forced sales if it falls below 1.0 [4][10]. Group 2: ETF Performance and Market Impact - The most popular ETFs tracking Strategy's stock, MSTX and MSTU, have both seen declines exceeding 80% this year, placing them among the worst-performing ETFs in the U.S. market [1][5]. - The total assets of MSTX, MSTU, and MSTP have shrunk from over $2.3 billion in early October to approximately $830 million [5][11]. - The leveraged ETFs designed to amplify Strategy's stock price fluctuations have become one of the hardest-hit asset classes, with their structure potentially exacerbating losses during volatile market conditions [6][12]. Group 3: Market Sentiment and Future Outlook - Analysts warn that Strategy may be removed from major indices like the MSCI U.S. Index and Nasdaq 100, which could trigger billions in passive fund outflows [6][12]. - The reliance on retail investor demand and the increasing pressure on its financing model have raised concerns about Strategy's future viability in the market [4][10].

Retail investors who piled into Michael Saylor’s grand Bitcoin experiment are paying a heavy price. Strategy Inc. — the company once hailed for wrapping crypto exposure into a public stock — is scrambling to calm markets after its shares plunged more than 60% from recent highs, amid a sweeping digital-currency rout. On Monday, Strategy said it had created a $1.4 billion reserve to fund dividend and interest payments, hoping to calm fears that it may be forced to sell Bitcoin if prices fall further. Most ...