Strategy’s common stock MSTR fell to a new 52-week low, again tracking the slump of BTC. MSTR crashed to $173.55, extending its slide from the past week.
MSTR, Strategy’s common stock, remained under pressure, dropping to a low of around $173.55. Soon after that, MSTR had a small bounce to $176, though remaining close to its lowest range for the past year. The shares are down a net 40% in the year to date and over 62% for the past 12 months.
Based on the ratio of fully diluted value to net asset value, Strategy has fallen to a ratio of 0.98. Despite the lack of MSTR dilution in the past few weeks and the higher number of BTC per share, the playbook has shown its negative side.
On the positive side, Strategy still holds relatively valuable BTC. However, selling or compensating holders may actually depress BTC further, in addition to the panic and reputational damage.
The current price slide has led to fears that MSTR can once again erase its value, similar to its crash during the dotcom boom. Strategy’s executive chairman Michael Saylor has still tried to calm the markets, stating the current playbook can hold a BTC drop of up to 80%.
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