Why is MSTR Stock Price Falling (Feb 2)

The stock of the Bitcoin treasury firm, MSTR, has now started to show losses as the market is declining. There are a couple of factors that have caused a change in the sentiment of the shares, especially the recent Bitcoin price crash.

MSTR Stock Falls as Bitcoin Price Plunges

According to Yahoo Finance, the stock has lost almost 8% in pre-market trading. The decline came after it bounced back during Friday’s trading session with a 5% increase.

The decline in the stock came as the Bitcoin price crash got worse over the weekend. The coin fell as low as $74,000 in the late hours of Sunday. The fall has caused millions in liquidations, and major devaluations have been seen in the stocks of major investors, especially Bitcoin treasury firms.

The main driver for the MSTR stock price decline was news of losses already seen by Strategy. As CoinGape reported, the Michael Saylor firm is now sitting at over $900 million in unrealized losses of its BTC holdings. The firm had maintained its purchases despite the crash that started two weeks ago.

However, the coin fell below its average purchase price of $76,000 in the dip. Meanwhile, the company has been selling some of its shares for their Bitcoin buys. Strategy sold 1,569 million of its common stock from January 20 to 25.

In the process, the company raised a sum of $257 million in net proceeds. It also sold 70,201 shares of STRC stock, raising $7 million in net proceeds. This was used in last week’s Monday BTC purchase of $264 million.

It is also worth noting that the MSTR stock has fallen by 10% over the past week. As experts have previously highlighted, the stock varies with how the crypto moves, and with the coin still trading sideways, it could fall even more.

Crypto Traders Bet on BTC Falling to Below $70,000

More investors are increasingly of the opinion that the coin will continue its downtrend for most of Q1. As per Polymarket, traders are giving a 66% probability that the token will drop to or below $70,000 before it gets back to $90,000.

The top crypto analysts appear to be in consensus with the forecast. For example, Peter Brandt recently reduced his target price due to the volatility. Due to this sentiment, an expert predicted the MSTR stock could still fall to $120.

Peter Schiff recently criticized the company’s Bitcoin treasury plan, saying they should have stacked up more gold instead. Meanwhile, Michael Saylor hinted at another purchase to come this week.