By Jonathan Weil
MicroStrategy hit a new milestone this morning. Its shares were down more than 50% from their all-time, intraday high in November.
In Wall Street lingo, that would qualify as a crash. Led by its charismatic executive chairman, Michael Saylor, the bitcoin-buying machine has been hurt by a decline in the price of the cryptocurrency, which recently fell below $87,000.
And while the stock still trades at a premium to the value of its bitcoin holdings, that gap has shrunk significantly.
(The company recently said it is doing business as Strategy. However, public filings show the official name, as specified in the company's charter, remains MicroStrategy.)
On Nov. 21, when the stock touched $543, the stock market was implying that a bitcoin owned by MicroStrategy was worth more than four times as much as a bitcoin owned by an ordinary person. As of this morning, that multiple has fallen to less than two times. The stock was recently down 11% from Monday's close, at about $250.
MicroStrategy owns about $43 billion of bitcoin, based on this morning's prices, and has more than $9 billion of net debt. Its stock-market value is about $65 billion using the company's recently updated share count.
As long as the stock trades at a premium to its holdings, it still has plenty of room to fall.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
February 25, 2025 11:32 ET (16:32 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。